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Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY 2800 Demand 2600 2400 2200 2000 1800 Supply 0.8 1.6 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 Equilibrium A CS PS Suppose that the government decides to impose a rent control of $2,100 per month on rental apartments in New York City. On the following graph, use the green point (triangle symbol) to shade the area representing consumers' surplus in the presence of rent control. Use the purple point (diamond symbol) to shade the area representing producers' surplus after the rent control. Then use the grey point (star symbol) to shade the area representing deadweight loss resulting from the rent control. MONTHLY RENT (Dollars per apartment) 2800 Demand 2600 2400 2200 Rent Ceiling 2000 Supply 1800 0.8 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes regions in the graph to see their areas. by CS w/ Rent Control PS w/ Rent Control Deadweight Loss Which of the following are generally true of rent control? Check all that apply. The quantity of available rental apartments increases. Non-price methods of rationing emerge. All consumers gain from rent control. The quality of rental apartments falls. Everyone who needs a place to live can rent an apartment. per month and producers' surplus per month of deadweight loss. Tool tip: Click on the shaded by

Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY 2800 Demand 2600 2400 2200 2000 1800 Supply 0.8 1.6 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 Equilibrium A CS PS Suppose that the government decides to impose a rent control of $2,100 per month on rental apartments in New York City. On the following graph, use the green point (triangle symbol) to shade the area representing consumers' surplus in the presence of rent control. Use the purple point (diamond symbol) to shade the area representing producers' surplus after the rent control. Then use the grey point (star symbol) to shade the area representing deadweight loss resulting from the rent control. MONTHLY RENT (Dollars per apartment) 2800 Demand 2600 2400 2200 Rent Ceiling 2000 Supply 1800 0.8 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes regions in the graph to see their areas. by CS w/ Rent Control PS w/ Rent Control Deadweight Loss Which of the following are generally true of rent control? Check all that apply. The quantity of available rental apartments increases. Non-price methods of rationing emerge. All consumers gain from rent control. The quality of rental apartments falls. Everyone who needs a place to live can rent an apartment. per month and producers' surplus per month of deadweight loss. Tool tip: Click on the shaded by

Macroeconomics
Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 8WNG
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Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. 2800 Demand 2600 2400 2200 2000 1800 Supply 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 Equilibrium A CS PS Suppose that the government decides to impose a rent control of $2,100 per month on rental apartments in New York City. On the following graph, use the green point (triangle symbol) to shade the area representing consumers' surplus in the presence of rent control. Use the purple point (diamond symbol) to shade the area representing producers' surplus after the rent control. Then use the grey point (star symbol) to shade the area representing deadweight loss resulting from the rent control. MONTHLY RENT (Dollars p 2800 2600 2400 2200 Demand Rent Celling 2000 Supply 1800 0.8 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes regions in the graph to see their areas. CS w/ Rent Control PS w/ Rent Control by Deadweight Loss Which of the following are generally true of rent control? Check all that apply. The quantity of available rental apartments increases. Non-price methods of rationing emerge. All consumers gain from rent control. The quality of rental apartments falls. Everyone who needs a place to live can rent an apartment. per month and producers' surplus per month of deadweight loss. Tool tip: Click on the shaded by
Transcribed Image Text:Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. 2800 Demand 2600 2400 2200 2000 1800 Supply 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 Equilibrium A CS PS Suppose that the government decides to impose a rent control of $2,100 per month on rental apartments in New York City. On the following graph, use the green point (triangle symbol) to shade the area representing consumers' surplus in the presence of rent control. Use the purple point (diamond symbol) to shade the area representing producers' surplus after the rent control. Then use the grey point (star symbol) to shade the area representing deadweight loss resulting from the rent control. MONTHLY RENT (Dollars p 2800 2600 2400 2200 Demand Rent Celling 2000 Supply 1800 0.8 2.4 3.2 QUANTITY OF APARTMENTS (Millions per month) 4.0 In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes regions in the graph to see their areas. CS w/ Rent Control PS w/ Rent Control by Deadweight Loss Which of the following are generally true of rent control? Check all that apply. The quantity of available rental apartments increases. Non-price methods of rationing emerge. All consumers gain from rent control. The quality of rental apartments falls. Everyone who needs a place to live can rent an apartment. per month and producers' surplus per month of deadweight loss. Tool tip: Click on the shaded by
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