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The city government is concerted about the high cost of housing rentals in t'r'e city. The indirect market demand curve of studio apartments is P{Q)=42005Q
The city government is concerted about the high cost of housing rentals in t'r'e city. The indirect market demand curve of studio apartments is P{Q)=42005Q and the indirect market supply cunre of studio apartments is HQ} = 50. At the unregulated market equilibrium, what quantity of studio apartments are being rented and for what price? Quantity: 1. (Round answer to the nearest whole number and use in subsequent utcuiabbns). Pn'ce: _ (Round answer to the nearest whoie number and use in subsequent calculations). Suppose the city government imposes a rent ceiling at F' =$1010_ At this price, how many studio apartments will be demanded and how many will be supplied? Quantity demanded: . (Round answer to the nearest whole numberand use in subsequent caicuiaons). Quantity supplied: :l. ( Round answer to the nearest whole number and use in subsequent calculations}. Assuming that the individuals with the highest reservation prices are the ones that obtain the rental units, what is the welfare impact of this policy on the market for stud io apartments? Change in consumer surplus: _ (Round answer to nearest whole number; tnci'ude a negative sign when appropriate). Change in producer surplus: :l. (Round answerto one decin'ralI place; lnci'ude a negative sign when appropriate). Change in social surplus: D. (Round answer to one deatnal place; tnd'ude a negative sign when appropriate}
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