Market for apartments in equilibrium

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Reference no: EM131090378

Draw, on a large graph, a market for apartments in equilibrium, and then apply a binding rent control. Explain and indicate how the relevant economic agents are affected by the application of this price control, and why economists say rent control is one of the best ways to destroy a city other than bombing it (think of incentives for all relevant economic agents, what happens in the short run, the long run, etc). Now, on the same graph, with respect to elasticity, what will happen to the supply and demand curves over time? How does this affect the market (think of both the aforementioned welfare implications and incentives)? No direct math, all logic and economic theory/thinking for this problem.

Reference no: EM131090378

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