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Supposethat owners of high-rise office buildings are the main employers ofcustodial workers in a city. The city has decided to imposerent controls, and it has established a rent ceiling below theprevious equilibrium rental rate for offices throughout the city.
a. How will the quantity ofoffices the building owners lease change?
b. How will the market wage andequilibrium quantity of labor services provided by custodialworkers be affected by the imposition of rent controls?
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