-The table above shows the demand for and supply of rental housing in Crainsboro. The city government is considering imposing a rent ceiling of $700 a month. Help the government to analyze the effects of the proposed rent ceiling.
a) Draw the demand and supply curves. With no rent ceiling, what is the rent and how many apartments are rented?
b) With the rent ceiling, what is the rent and how many apartments are rented? What is the shortage of housing? Explain.
c) If the rent ceiling is strictly enforced, what is the maximum price that someone is willing to pay for the last unit of housing available? Is the housing market efficient? Explain.
d) If a black market develops, how high could the black market rent be? Explain your answer.
Definitions:
Accord And Satisfaction
A legal agreement between parties to settle a dispute where one party agrees to accept less than owed to resolve the claim.
Unique Framing
The practice of presenting or structuring information, concepts, or physical items in a distinctive or novel manner that sets them apart.
Original Contract
A primary agreement between parties before any amendments, modifications, or revisions.
Ethical And Equitable
These terms refer to principles and practices that are morally right and fair, ensuring justice and equality in various contexts.
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