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Your city has enacted rent control. Monthly rents for 2 bedroom apartments cannot be set higher than $1350/month, though they may be set lower. One
Your city has enacted rent control. Monthly rents for 2 bedroom apartments cannot be set higher than $1350/month, though they may be set lower. One way to mitigate the effects of rent control is to change the quality of the apartments. By reducing maintenance, you reduce your costs. Quality also falls, which negatively impacts what people are willing to pay. Keeping quality the same as your answer in Part 1, select the rental rate (which may be the rent ceiling, or lower], and quantity leased to maximize prots. The quantity leased must be less than or equal to the quantity demanded in cell C14. Rent: Quality: Quantity demanded Quantity leased: Total costs: $1,350 High 1700 0 $500,000
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