We begin with an analysis of two laws related to eviction of a renter. Under law 1, a renter has 30 days to vacate an apartment after being serves with an eviction notice.

Under law 2, the renter has 90 days to vacate.

Landlords will find if less expensive to rent apartments under law 1 than under law2. Under law 1, the most money a landlord can lose after serving an eviction notice is 30 days 'rent. Under law 2, a landlord can lose 90 days' rent. Obviously, losing 90 days' rent is more costly than losing 30 days 'rent.

A different supply curve of apartments exists under each law. The supply curve under law 1 ( S1 in exhibit 8 ) lies to the right of the supply curve under law 2 (S2 in exhibit). Again, that's because it is less expensive to supply apartments under law 1 than under law 2.

If the supply curve is different under the two laws, the equilibrium rent will be different too. As shown in exhibit 8, the equilibrium rent will be lower under law 1(R1) than under law 2 (R2).

In conclusion, under law 1, a renter pays lower rent (good) and less few days to vacate the apartment (bad). Under law 2, a renter pays a higher rent (bad) and has more days to vacate the apartment (good). Who pays for the additional days to vacate the apartment under law2? The renter pays for these additional days by paying higher rent.

1. Economists often say, "There is no such thing as a free lunch." How is this saying related to patients moving from a system where they cannot sue their HMOs to one where they can?

2. A professor tells her students that they can have an extra week to complete their research papers. Under what condition are the students better off with the extra week? Can you think of a case where the students would actually be worse off with the extra week?