Suppose that there are 5 apartments to be rented and that the city rent-control board sets a maximum rent of $9. Further suppose that people A, B, C, D, and E manage to get an apartment, while F, G, and H are frozen out.

1. If subletting is legal -or, at least, practiced -who will sublet to whom in equilibrium? (Assume that people who should sublet can evade the city rent-control restrictions.) ________
2. What will be the maximum amount that can be charged for the sublet payment? _________
3. If you have rent control with unlimited subletting allowed, which of the consumers described above will end up in the 5 apartments? _____
4. How does this compare to the market outcome? __________