What are the possible negative effects due to price ceiling

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Reference no: EM13762668

Question 1:

Use supply and demand analysis to show the effect of a (binding) price ceiling in the market for rental properties.

What are the possible negative effects due to this price ceiling?
What happens to the total surplus (total surplus = consumers' surplus + producers' surplus)?
Why do governments use price ceilings despite these negative effects?
Who might benefit from this price ceiling?

Question 2:

Explain the different outcomes between perfect competition and monopoly ("regular" monopoly).

Use a single graph to illustrate this difference.

Please talk about ALL relevant differences between the two market structures including, but not limited to, basic assumptions, equilibrium quantity, equilibrium price, consumers', producers', and total surplus, etc.

Reference no: EM13762668

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