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Suppose the demand for apartment rentals in Lafayette is Q = 1000 - P and the supply of apartment rentals is Q = 4P
Part 1 - What is the equilibrium price and quantity of apartment rentals in Lafayette?
Part 2 - Suppose the government imposes a price ceiling of $150. What is the impact on the equilibrium outcome?
Part 3 - Does this price ceiling necessarily increase consumer surplus? Explain.
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