Figure 35.1
-In Figure 35.1, if rents are controlled then number of apartments that used to be rented that are now no longer rented is

Question

Quizplus · Accepted Answer

In the graph, Q* apartments were rented at the market equilibrium price. As rent control is imposed, the price decreases and more people demand apartments. The quantity demanded increases to Q" but the quantity supplied decreases to Q'. So, the number of apartments that used to be rented that are now no longer rented is Q*-Q'.

Figure 35.1 -In Figure 35.1, If Rents Are Controlled Then Number of Number