Consider both efficiency in terms of surpluses

Reference no: EM133380750

Question: Suppose Iowa City is concerned with college students who cannot afford housing. It is considering two policies: rent control (a price ceiling setting the maximum rent legally allowed) and giving students a cash stipend to be used for rent. Which would you recommend? Consider both efficiency (in terms of surpluses and deadweight loss) and equity (the number of students who can afford housing). Draw a graph! Be rigorous and back up your claims (do not make assertions without showing your reasoning.)

Reference no: EM133380750

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