# Demand : P = 2700 – 0.12q Supply : P = -300 + 0.12q a. if the local authority can enforce a rent-control law that sets the maximum monthly rent at

Demand : P = 2700 – 0.12q

Supply : P = -300 + 0.12q

a. if the local authority can enforce a rent-control law that sets the maximum monthly rent at \$900, will there be a surplus or a shortage ? of how many units will this be ? and how many units will actually be rented each month ?

b. suppose that the goverment decides to implement a policy to keep out the poor. it declares that the minimum rent can be changed is \$1,500 per month. if the goverment can enforce that price floor, will there be a surplus pr a shortage ? of how many units will this be ? and how many units will actually be rented each month?

c. suppose that the goverment wishes to decrease the market equilibrium monthly rent to \$900 by increaseing the supply of housing. assuming that demand remains unchanged, find the new equilibrium quantity and new inverse supply curve

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