21 question (2 points) imagine that your city decides to enact a rent - control law that limits the price of…

21 question (2 points) imagine that your city decides to enact a rent - control law that limits the price of a one - bedroom apartment to $600 per month. using the table below, answer the following questions. monthly rent quantity demanded quantity supplied $500 800 140 $550 650 210 $600 500 280 $650 350 350 $700 200 420 1st attempt part 1 (1 point) what is the market price without rent control? $ part 2 (1 point) how many one - bedroom apartments will be rented after the rent control law is passed?

21 question (2 points) imagine that your city decides to enact a rent - control law that limits the price of a one - bedroom apartment to $600 per month. using the table below, answer the following questions. monthly rent quantity demanded quantity supplied $500 800 140 $550 650 210 $600 500 280 $650 350 350 $700 200 420 1st attempt part 1 (1 point) what is the market price without rent control? $ part 2 (1 point) how many one - bedroom apartments will be rented after the rent control law is passed?

Answer

Explanation:

Step1: Find equilibrium price

In a free - market, equilibrium occurs when quantity demanded equals quantity supplied. Looking at the table, when the monthly rent is $650, the quantity demanded is 350 and the quantity supplied is 350.

Step2: Determine quantity after rent - control

The rent - control law sets the price at $600. At this price, the quantity supplied is 280 (from the table).

Answer:

Part 1: $650 Part 2: 280