This need to be answer from article. To determine the impact that this price control has on allocative efficiency on your graph show the consumer surplus and producer surplus before and after the price ceiling is imposed. Does consumer surplus increase? Does producer surplus increase? Does rent control make deadweight loss in a rental housing market? Why?

Does allowing tenants to sublet apartments on a short-term basis improve economic efficiency? In answering the question, evaluate the quote from the article: "I'm just a fundamental believer that when you have a scarce resource, whether it's housing or parking lots, there's got to be a better way to share those scarce resources [by allowing tenants to sublet apartments on a short-term basis]." What is the effect of permitting tenants to sublet apartments using Airbnb on the affordability of living in San Francisco? Should tenants in rent-controlled apartments be permitted to sublet their units on Airbnb? Explain

Saudi Arabia Pledges to Support Oil Markets U.A.E. has also previously said it is willing to boost exports to meet any supply shortage The skyline in Riyadh. Saudi Arabia says it will help \"mitigate the impact of any potential supply shortages\" caused by the new Iran sanctions. PHOTO: SIMON DAWSON/BLOOMBERG NEWS By Summer Said Updated May 9, 2018 3:46 a.m. ET 6 COMMENTS Saudi Arabia pledged to help stabilize global oil markets in the wake of the Trump administration's decision to reinstate economic sanctions on Iran, a move that could eventually deprive world markets of a significant chunk of supply. President Donald Trump said Tuesday he was pulling out of a multilateral deal that removed sanctions on Tehran in exchange for Iran abandoning its nuclear ambitions. Washington indicated new U.S. sanctions would limit Iranian exports of crude, although officials didn't provide specifics. Saudi Arabia, long a regional rival to Iran and a fierce competitor for global oil market share, quickly telegraphed its willingness to step in. It has limited its own output since 2016, as part of a pact among big producers to help lift prices. President Trump Announces Exit From Iran Deal President Trump announced that the U.S. would withdraw from the Iran nuclear deal and reinstate sanctions on Tehran. In the wake of Washington's decision, Saudi Arabia issued a statement saying it remained \"committed to supporting the stability of oil markets.\" It said that, along with other big producers, the country would help \"mitigate the impact of any potential supply shortages\" caused by the new sanctions. Iran has recently been exporting 2.7 million barrels a day of crude, or close to 3% of global supplies. Most of that is bought by Chinese and other Asian buyers, as well as European customers. Some of those buyers, depending on the severity of U.S. sanctions, may need to find new suppliers. RELATED U.S. Pullout From Iran Pact Widens Mideast Gulf Trump's Iran Sanctions Put Oil Giants in a Bind How Fast Could Iran Build a Nuclear Bomb Capital Journal: Iran-Deal Withdrawal Is Trump's Biggest Gamble Yet The U.S. administration said it would give companies and banks several months to wind down commitments, although it wasn't clear how that might affect oil exports. Oil prices have strengthened in recent weeks amid worry Washington would reinstate draconian sanctions that might quickly curtain Iranian exports, cutting global supplies. Traders have more recently bet any disruption may be more limited than expected and have sold off oil. Light, sweet crude for June delivery settled down 2.4% Tuesday at $69.06 a barrel on the New York Mercantile Exchange, breaking a foursession winning streak, but paring some losses. Brent, the global benchmark, fell 1.7% to $74.85. In Asian trading Wednesday, oil futures returned to 3-year highs. Light, sweet crude futures were up 2.3% at $70.65 and July futures for Brent were up 2.5% at $76.70 a barrel. Will Trump's Iran Bet Pay Off? After President Trump's gamble in pulling the U.S. out of the Iran deal, the focus now shifts to Tehran, the Iranian people and America's allies. Gerald F. Seib explains the stakes. Any further guidance from the White House about the severity and timing of the new sanctions in coming days could further roil markets. Both Saudi Arabia and the United Arab Emirates, another big Mideast producer, have previously told the U.S. they were willing to boost exports to meet any supply shortage resulting from new Iranian sanctions, according to people familiar with the matter. The Trump administration said Tuesday it sought to find oil producers, like Saudi Arabia, who might step in and fill any gap left by the reduction in Iranian crude exports. \"Without commenting on specifics, we've have various conversations with various parties...(who) would be willing to offset this,\" said U.S. Treasury Secretary Steven Mnuchin. \"My expectation is not that oil prices will go higher. I think we're careful in wanting to make sure that we balance supply and demand.\" Write to Summer Said at summer.said@wsj.com Appeared in the May 9, 2018, print edition as 'Saudis Vow Support tabilizeFor Stability of Oil.' Global Oil Stocks Fall to Three-Year Low, IEA Says Report suggests OPEC has succeeded in clearing up excess global supply that has weighed on the oil market since late 2014 Dropping Below the MarkThe Organization for Economic Cooperation and Development countries' crudeinventories have fallen below their 5-year average.OECD stocks vs. 5-year averageSource: International Energy Agency By Christopher Alessi Updated May 16, 2018 12:26 p.m. ET 4 COMMENTS Commercial oil stocks in industrialized economies have fallen to their lowest level in three years, the International Energy Agency said Wednesday, in the latest sign that the global supply glut has been mopped up and the market rebalanced. In its closely watched monthly oil market report, the IEA said commercial oil inventories for the Organization for Economic Cooperation and Development countries declined in March by 26.8 million barrels month-on-month to 2.819 billion barrels. That's 1 million barrels below the latest five-year average metric widely used by oil market participants to assess the rebalancing process. The IEA suggested the drawdown in stocks was evidence that efforts led by the Organization of the Petroleum Exporting Countries to cut crude output had succeeded in clearing up excess global supply that has weighed on the oil market since late 2014. OPEC and 10 producers outside the oil-cartel, including Russia, have been holding back crude production by roughly 1.8 million barrels a day since the start of last year. The agreement, which was extended in November, is set to expire at the end of this year. An Iraqi oil technician checks a pressure gauge at the Nahr Bin Omar natural gas field, north of the southern Iraqi port of Basra. PHOTO: HAIDAR MOHAMMED ALI/AGENCE FRANCE-PRESSE/GETTY IMAGES \"For the first time since 2014, OECD stocks were below the five year average metric widely cited to measure the success of the OPEConOPEC\" agreement, the reported noted. Since the OPEC accord was implemented, OECD stocks have declined by 233 million barrels, the agency added. OPEC crude output fell month-on-month in April by 130,000 barrels a day to 31.65 million barrels a day, mainly a result of production outages in Venezuela, according to the IEA. However, the Paris-based organization lowered its global oil demand forecast for this year to 1.4 million barrels a day from a previous estimate of 1.5 million barrels a day, meaning world oil demand should average 99.2 million barrels a day in 2018. The IEA attributed the downward revision mainly to higher oil prices. Crude prices climbed by more than 50% in the second half of last year, largely on the back of strong compliance with the OPEC-led plan. RELATED OPEC Output Rises on Higher Production in Saudi Arabia Trump's Iran Sanctions to Shake Up Global Oil Supply Lines OPEC, Russia Back Continued Oil Cuts, Drawing Trump Ire (April 20) What Happened to the Oil Glut? (April 12) Newsletter Sign-up The market has also been bolstered by geopolitical risk to supply. President Donald Trump's decision earlier this month to pull the U.S. out of the Iran nuclear deal sent oil prices to more than 3 -year highs. Oil prices eased off 3-year highs on Wednesday. Brent crude, the global oil benchmark, was down 0.6% to $77.95 a barrel on London's ICE Futures. Iran currently exports around 2.4 million barrels a day of crude, according to the IEA. The U.S. is set to reimpose economic sanctions on Iran, which will frustrate the OPEC members oil output and further reduce global oil supplies. \"As key players continue how to react to the new policy...the market balance continues to tighten, though by slightly less than last month,\" the agency wrote in the report. The IEA also raised its growth forecast for U.S. crude output in 2018 by 120,000 barrels a day to 1.3 million barrels a day, largely due to strong shale oil growth. But the agency cautioned that \"concerns about cost inflation and infrastructure bottlenecks...alongside a focus on investor returns are expected to limit additional growth this year.\" Write to Christopher Alessi at christopher.alessi@wsj.com Corrections & Amplifications Commercial oil inventories for the OPEC countries declined in March to 2.819 billion barrels. An earlier version of this article incorrectly stated the number of barrels. Oil Is Above $70, but Frackers Still Struggle to Make Money Most of top 20 shale-oil producers spent more than they made in first quarter An aerial photograph over Crane, Texas, in the Permian Basin, which is currently the center of U.S. shale-drilling activity. PHOTO: DANIEL ACKER/BLOOMBERG NEWS By Christopher M. Matthews and Bradley Olson Thursday, May 17, 2018 5:30 AM EDT American shale drillers are still spending more money than they are making, even as oil prices rise. Of the top 20 U.S. oil companies that focus mostly on fracking, only five managed to generate more cash than they spent in the first quarter, according to a Wall Street Journal analysis of FactSet data. Shale companies have helped propel U.S. oil output to all-time highs, surpassing 10 million barrels a day and rivaling Russia and Saudi Arabia. But the top 20 companies by market capitalization collectively spent almost $2 billion more in the quarter than they took in from operations, largely due to bad bets hedging crude prices, as well as transportation bottlenecks, labor and material shortages that raised costs. Many of the producers did better to start this year than at any point since 2014, when oil prices began a crash that the industry is fully recovering from only now. Still, the companies spent about $1.13 for every $1 they took in. Oasis Petroleum Inc. OAS +3.98% spent $3.27 for every $1 it made in cash, while Parsley Energy Inc . spent almost $2 for every $1 it made in cash, according to FactSet. While many shale operators have positive net income this year, many shareholders have begun paying closer attention to how much the companies are spending, as they seek to compel them to live within their means and begin to produce stronger returns. Cash Gusher Shale companies are still spending more than they are making, despite rising oil prices. *For top 20 U.S. companies focused primarily on shale Source: WSJ analysis of FactSet data Hedging played a big role in companies' underwhelming cash generation. Seeking stability after years of wild fluctuations in crude prices, many operators entered into derivatives contracts in late 2017 that effectively ensured they could sell some of their 2018 output for $50 to $55 a barrel. Now that prices have risen to more than $70 a barrel, many are failing to capture the value of the rally. WPX EnergyInc. reported an adjusted net loss of $30 million last quarter, which it said was driven by $69 million in losses on its hedges due to higher oil prices. Some companies are already adjusting their strategies because of higher oil prices. Parsley Energy, which is focused on the Permian Basin, the oil field in Texas and New Mexico that is currently the center of U.S. shale-drilling activity, hedged most of its 2018 production. It plans to change that going forward, and expects to generate more cash relative to spending in coming quarters. \"Early signs of labor tightness motivated Parsley Energy to increase drilling and completion activity significantly last year when rigs and crews were easier to come by,\" said Parsley Chief Executive Bryan Sheffield. \"[N]ow that we are operating at a steady development pace, we should continue to generate increasing cash flow.\" Continental Resources Inc., which is primarily active in shale formations in North Dakota and Oklahoma, didn't hedge its oil production for 2018. It raked in almost $258 million in cash after expenses in the first quarter, best among its peers. If U.S. crude prices stay at about $70 a barrel for the rest of 2018, energy consultant Wood Mackenzie estimates that hedging strategies would reduce annual revenue by an average of 7% for six companies focused on the Permian basin. Newsletter Sign-up Investors remain broadly hopeful that shale companies' performance will improve in 2018 due to rising oil prices and global demand. But concerns about the companies' ability to manage expenses linger. \"These companies have done well this year and they are saying the right things,\" said Tyler Rosenlicht, a senior vice president at Cohen & Steers, which manages about $60 billion in assets. \"But a lot of investors were so burned down in the past that there will be a longer pause before they feel fully comfortable again.\" EOG Resources Inc., the biggest U.S. shale producer, reported firstquarter profit of $638 million, a more than twentyfold increase over the prior year. But its cash surplus compared with spending was $110 million for the period. Its stock has risen about 9% this year, while U.S. crude prices are up 17% in that time. RELATED Brent Crude Hits $80 Shale Drillers Look Beyond Texas as Prices Rise Heart of America's Oil Boom Can't Fetch Good Prices for Its Crude Oil Costs How Much? How the Oil Rally Took Forecasters by Surprise Shale producers failed to generate cash even as one of their primary obstacles to profitability in past years, oil-field-services costs, rose only modestly. While trucking and labor shortages in the Permian are already vexing many companies, some costs related to drilling contractors have increased by 15% or less because rates were locked in last year when oil prices were low. But those costs could climb further later this year, analysts say. Shale companies' profitability may also be threatened by rising costs for the immense amounts of sand and water needed for fracking. Modern fracking jobs now require 500 tons of steel pipe, enough water to fill 35 Olympic swimming pools and enough railcars filled with sand to stretch for 14 football fields, according to Rice University's Center for Energy Studies. Many companies may be forced to choose between hitting production targets, and promises to investors to keep spending in check, said James West, an analyst at Evercore ISI. \"Service pricing is going to hit them like a brick wall,\" he said. \"I'm personally not convinced [they will] stick to capital discipline. In their heart of hearts, they just want to grow.\" Write to Christopher M. Matthews at christopher.matthews@wsj.comand Bradley Olson at Bradley.Olson@wsj.com Rent Controls, a Bane of Landlords, Are Gaining Support as Costs Soar Movement finds momentum as price pressures rise in urban areas, tax incentives for ownership wane Voters hold signs demonstrating their support for legislation that would allow California communities to expand rent-control policies during a legislative hearing in Sacramento on Jan. 11. PHOTO: ASSOCIATED PRESS By Laura Kusisto Feb. 4, 2018 8:00 a.m. ET 195 COMMENTS Calls for rent-control legislation are growing across the U.S. as apartment tenants endure sharply rising rents and memories fade of the downsides of price caps. Lawmakers and advocates in California, Illinois and Washington state are pushing to repeal state laws that forbid rent control or place limits on cities' ability to regulate rent increases. A similar initiative in Oregon was narrowly defeated last spring. Boston, meanwhile, recently passed a bill that restricts landlords' ability to evict tenants, although the legislation still requires approval from the state legislature. From 2000 to 2016, median inflation-adjusted rents in the U.S. jumped 15% to $980, while renter incomes declined slightly, to $37,300 from $38,000, according to Harvard University's Joint Center for Housing Studies. Some cities, such as San Francisco, Portland, Sacramento and Seattle, have logged annual double-digit increases at various points during the past few years. While rent increases at the high end have slowed recently because of a flood of new luxury supply, increases for midprice properties have shown little sign of abating. \"We cannot build our way out of a crisis of this proportion,\" said Elena Popp, founder of the Los Angeles-based Eviction Defense Network, one of the groups pushing for stronger rent-control laws in California, along with ACCE Action and the AIDS Healthcare Foundation. \"Expanding rent control is the best way to protect affordability.\" Any moves to impose caps would come as a new tax overhaul takes effect that reduces tax incentives for homeownership. If rent caps are put in place, the balance could shift even more toward renting over buying. A 'For Rent' sign outside an apartment building in Sacramento, Calif. PHOTO: ASSOCIATED PRESS Price pressures have been increasing since the latest recession. Cities from San Francisco to Boston to Chicago have seen an influx of young, educated workers who are eager to rent apartments near downtown amenities. At the same time, there has been little apartment construction targeted to moderate-income residents, partly because of rising construction costs and tight building regulations. \"I don't blame some people for being upset about [rent increases], but they don't look at the root causes,\" said Douglas Bibby, president of the National Multifamily Housing Council, a landlord group. Wall Street investors, meanwhile, bought thousands of single-family houses out of foreclosure during the housing bustalthough they continue to own a small percentage of the overall stockand some have been criticized for jacking up rents too aggressively. California is set to be the largest and most important battleground for rent controls this year. Advocates for low-income residents in less than a month have gathered more than 100,000 signatures out of roughly 365,000 required to put a measure on the ballot in November that would repeal a 20-year-old bill that places statewide limits on rent control. If that is repealed, California cities would be able to impose rent control on apartments built after 1995 and on single-family rentals, a key issue for advocates who say large private-equity companies bought up homes during the bust and have been raising rents more aggressively than mom and pops. Sheri Eddings, who lives in a single-family rental in Los Angeles owned by Invitation Homes, said since she has lived in the home they twice have tried to increase her rent by $500 a month over the course of two years. She pushed back and the increase over the next two years is closer to $360 a month. \"Right now, renting in L.A. is scary,\" she said. A spokeswoman for Invitation Homes said in the time Ms. Eddings has lived there her rent increases have averaged out to less than 5% a year. \"Our rents are set in line with our local markets and are dramatically lower on a per-square-foot basis than apartments.\" The current law also gives landlords the right to raise rents to market each time tenants move out, which owners say is critical because those market-rate-paying tenants subsidize those who have lived there for years and pay significantly less. Earle Vaughan, president of the Apartment Association of Greater Los Angeles, which has rent control for older multifamily buildings, said in one of his buildings two tenants who pay market rents of $1,895 for a two-bedroom unit subsidize six others who pay $1,200. \"Our small owners get vilified....I'm the definition of an affordable-housing provider,\" Mr. Vaughan said. Without the ability to raise rents to market, \"over time you will bankrupt me,\" he said. Landlords plan to oppose the measure by saying the state needs more development, which could help bring down prices. But that may be a tough sell in California, where homeowners and renters alike are often wary of additional density. \"I think at the very heart of this is you have to build and you have to build fast,\" said Tom Bannon, president of the California Apartment Association. He acknowledged that idea is highly unpopular. The beginnings of rent control date to World War II in New York City, when labor and material shortages because of the war meant little new housing was being built and policy makers sought to avoid a rental affordability crisis. An emergency measure to curb rent increases effectively became permanent, though the number of units it covers has declined over time. Economists generally have a dim view of rent control, which they say restricts supply and drives up rents for tenants who don't live in regulated buildings. A working paper released in January by Stanford University economists found that from 1995 to 2012 rent control in San Francisco helped residents in rent-controlled apartments, increasing the likelihood that they would stay at their address by nearly 20%. But the study also found that rent control hurt the city overall by making landlords more likely to convert their apartments to other uses and deplete the housing stock, leading to a permanent citywide rent increase of 5%. \"Tenants benefited dramatically when they were covered by rent control,\" said Rebecca Diamond, an assistant professor of economics at Stanford and one of the authors of the paper. \"We don't really share it as a society.\" In Washington State, lawmakers in the house and senate have proposed legislation to remove a statewide ban enacted in 1981 that forbids local jurisdictions from enacting rent control. The bills aren't poised to be voted on this year, but Brett Waller, director of government affairs at the Washington Multifamily Housing Association, said he expects them to come under serious consideration for a vote in the next session. In Illinois, bills have been proposed in the state house and senate to lift the 1997 ban on local rent control ordinances. Voters in some parts of Chicago will also be able to vote in March on a nonbinding ballot question about whether to lift the ban. \"We view it as a serious challenge,\" said Michael Mini, executive vice president of the Chicagoland Apartment Association. Write to Laura Kusisto at laura.kusisto@wsj.com Airbnb Enlists San Francisco's Biggest Landlord Veritas Investments will allow tenants to rent out units through Airbnb Airbnb has been in the cross hairs of numerous fights over housing scarcity, pitting it against tenant advocates and landlords alike. PHOTO: JOHN MACDOUGALL/AGENCE FRANCE-PRESSE/GETTY IMAGES By Laura Kusisto Updated Nov. 5, 2017 6:41 p.m. ET 12 COMMENTS San Francisco's largest apartment landlord will begin allowing tenants to rent out their units on Airbnb Inc., a victory for the short-term-rental website that could prompt an outcry from opponents who say the site is helping to drive up housing costs. Veritas Investments, which owns more than 5,000 units in San Francisco, will allow tenants to rent their units to tourists and other temporary residents as long as they use the Airbnb platform. The company is piloting the program in five of its buildings, with about 100 units in total. RELATED Is Airbnb a Boon or a Bane for Tenants? Boomers and Millennials Disagree (Oct. 24) How Airbnb Affects Home Prices and Rents (Oct. 22) Big Apartment Landlord Sues Airbnb(Feb. 17) \"I'm just a fundamental believer that when you have a scarce resource, whether it's housing or parking lots, there's got to be a better way to share those scarce resources,\" said Yat-Pang Au, chief executive of Veritas Investments, which is based in the city. Airbnb, which was founded in San Francisco in 2008, has been in the cross hairs of numerous fights over housing scarcity, pitting it against tenant advocates and landlords alike. It has received a similarly contentious reception in other pricey cities such as New York, Los Angeles and Miami. In the spring, the company settled a lawsuit with the city of San Francisco over a rule that imposed fines of $1,000 a day for hosts who don't register their units with the city. Under the terms of the settlement, hosts are to register through Airbnb's website and it will pass the information to city officials. Airbnb has agreed to purge its site by the beginning of next year of listings of units that aren't registered. Veritas is the guardian of some of the city's most politically sensitive housing stock: older buildings with many rent-controlled units. Airbnb officials said this represents a new market, distinct from its traditional focus on newer buildings owned by large, institutional landlords. \"The partnership really legitimizes home sharing for a community of apartment residents who weren't really part of the home-sharing conversation prior to this,\" said Jaja Jackson, director of global multifamily-housing partnerships at Airbnb. Affordable-housing advocates fear that if renters are allowed to sublet their units on Airbnb it will boost rents further in the city, where rates already have risen by 50% since the recession. Recent academic research into rents and home prices in the 100 largest metropolitan areas in the U.S. between 2012 and 2016 found that a 10% increase in Airbnb listings leads to a 0.39% increase in rents and a 0.64% increase in home prices. But Airbnb executives argue that allowing tenants to rent their units out on the site helps make housing more affordable in costly cities, by enabling them to generate extra income. \"Your income should not define you as a San Francisco resident. We want this option to be available to people who want to live and stay in San Francisco,\" Mr. Jackson said. Veritas has been speaking with Airbnb for several years but Mr. Au said he was initially hesitant. \"It's a particularly charged circumstance with Airbnb here,\" he said. \"Most of our assets are rentcontrolled. People are paying super low rents and are scofflawing and making a profit on landlords and their neighbors.\" Mr. Au said he became more open to allowing Airbnb after the settlement with the city, which helped create legal limits designed to protect tenants. The company also has created a $1 million insurance policy that helps protect landlords from liabilitythough some owners say it isn't enough. The partnership between Airbnb and Veritas includes Pillow Residential, a startup independent from Airbnb that helps tenants and landlords manage Airbnb listings by arranging for cleaners, tracking how many nights a year tenants rent out their units and giving guests a point of contact if something goes wrong. Tenants in Veritas buildings who want to rent their units out short term will have to use Airbnb and Pillow. Working with Pillow could be a tool for Airbnb to win over landlords who still have concerns about letting tenants open up their buildings to strangers. Airbnb a year ago unveiled its Friendly Buildings Program, under which landlords permit tenants to rent their units out on Airbnb in exchange for a cut of the profits. Apartment owners raised concerns initially about liability, the safety of residents and the effect of mixing long-term residents and tourists, but the program has been gaining traction, especially in recent months. There are now more than 13,000 units enrolled all told. Charley Goss, government and community-affairs manager at the San Francisco Apartment Association, which represents landlords, said he has heard of limited interest from local landlords. \"We're a little bit sensitive to affordability issues in San Francisco. The cost of our housing is very, very expensive. Conducting short-term rentals takes away housing from people who live here and work here and gives it to tourists who are visiting for the weekend.\" A survey by the National Multifamily Housing Council and Kingsley Associates found that tenants' views of short-term rentals are sharply divided. According to the survey, 21% of renters between 25 and 34 years old said knowing that a building allows short-term rentals would positively affect their opinion of it, while 11% said they wouldn't live in a building that allows the practice. In contrast, 8% of those 65 years and older said they would view being able to rent their unit out short-term as a perk, while 32% said they wouldn't rent in that building. Residents were fairly evenly split in the Bay Area, where 18% of respondents said knowing a building allows short-term rentals would positively affect their view of the community and 21% said it would negatively affect it. Mr. Au said Veritas has no set timeline for when it might decide to expand the program beyond the first five buildings because the company remains at the frontier of allowing tenants to use Airbnb's services.There are still a limited number of landlords using the program in San Francisco. So far, buildings with 1,100 units are enrolled in the Friendly Buildings program. \"It could end up being a situation where our residents broadly hate it,\" Mr. Au said. \"It may turn into a huge success, where residents say, 'I'm using it and I'm more affordably able to live in San Francisco.'\" Write to Laura Kusisto at laura.kusisto@wsj.com Appeared in the November 6, 2017, print edition as 'Airb