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The graph below shows the supply and demand of apartments in Paradise City. At the market rate of $2000 per month, renters would demand 1500
The graph below shows the supply and demand of apartments in Paradise City. At the market rate of $2000 per month, renters would demand 1500 apartments. Yet the city council recently passed a rent control, mandating landlords charge no more than $1500 per month.At this new rate, how many apartment units are landlords willing to supply? How many apartment units do demanders wish to rent? Calculate the deadweight loss associated with this rent control.
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