The price for one-bedroom apartments in Johannesburg is determined by the forces of demand and supply. However, customers are unhappy with the current market (equilibrium) price for rent. Many of them are unable to afford the rent and have appealed to the government to intervene in this market.

Required: 3.1 Explain and illustrate, by means of a graph, how the government should intervene for economic reasons. (10) 3.2 Explain the consequences of government intervention, ceteris paribus. (5)