Let Market Supply for apartments be P=$200+0.5Qs Let Market Demand for apartments be P=$1700-0.75Qd a.) Calculate...
Let Market Supply for apartments be P=$200+0.5Qs
Let Market Demand for apartments be P=$1700-0.75Qd
a.) Calculate the amount of Producer Surplus gained if rent control occurred, and the new price was set at $550 per month).
NOTE: CS Gained = 341664.
Calculate GAIN FROM PS
b) Calculate the amount of Producer Deadweight loss arising due to the rent control.
NOTE: DWL CS is 1/2(1175-800)*(1200-700)=93750
Please Calculate DWL FROM PS
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Let Market Supply for apartments be P=$200+0.5Qs
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