Suppose that university students in Bandar Sunway convinced the local authority to enact a law setting the maximum price for rental housing at RM200 per month. Will this help or hurt university students who wish to rent housing?

In your answer address how the price ceiling will affect:

(a)the amount of rental housing available and the ease with which students will be able to find housing (illustrate using an appropriate diagram) (3 marks)

(b)the consumer surplus, producer surplus and total surplus Note: Show the changes before and after the price ceiling using a diagram. (5 marks)

(c)the incentive of landlords to maintain their property and the quality of rental housing (1 mark)

(d)the amount of racial, gender, and other types of discrimination in the local rental housing market.