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Consider the following supply schedule for apartments in a local market.

Q1a: Draw supply and demand curves, label the axies.

Q1b: Mark the area of consumer and producer surplus on graph

Q1c: Mark the area the represents the total cost of supplying the apartments

Assuming that the going rental price for apartments are determined by the market equilibrium,

Q2: How many apartments will be rented?

Q3: What will these apartments be rented for?

Q4: Assume that a landlord is willing to supply an apartment only if the rental price is at least $1,050 per month. What is the individual profit in this market?

Assume that the local authority wants to increase the number of tenants and are considering a policy that would limit the price that landlords can charge to $1,000,

Q5: How many apartments will be demanded at this price?

Q6: How many apartments will be supplied at this price?

Q7: What is the impact on the following parties (Multiple-choice):

(A) They benefit

(B) They are harmed

(C) There is no effect

Q7a: The landlords who own the apartments:

Q7b: The renters who are able to find an apartment

Q7c: The renters who are unable to find an apartment

Q7d: The local authorities who wanted to increase the number of housed people in their community

Q7e: Home owners who occupy their own homes

\begin{tabular}{|c|c|c|} \hline Monthly Rent & Supply & Demand \\ \hline$2,400 & 180 & 0 \\ \hline$2,200 & 160 & 20 \\ \hline$2,000 & 140 & 40 \\ \hline$1,800 & 120 & 60 \\ \hline$1,600 & 100 & 80 \\ \hline$1,400 & 80 & 100 \\ \hline$1,200 & 60 & 120 \\ \hline$1,000 & 40 & 140 \\ \hline$800 & 20 & 160 \\ \hline$600 & 0 & 180 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Monthly Rent & Supply & Demand \\ \hline$2,400 & 180 & 0 \\ \hline$2,200 & 160 & 20 \\ \hline$2,000 & 140 & 40 \\ \hline$1,800 & 120 & 60 \\ \hline$1,600 & 100 & 80 \\ \hline$1,400 & 80 & 100 \\ \hline$1,200 & 60 & 120 \\ \hline$1,000 & 40 & 140 \\ \hline$800 & 20 & 160 \\ \hline$600 & 0 & 180 \\ \hline \end{tabular}

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