2. The effects of rent control Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to w the area representing producers' surplus 2000 + Demand Equilibrium 2400 A 2200 CS MONTHLY RENT (Dolors per apartment 2000 PS 1000 Supply QUANTITY OF APARTMENTS Milions per month Suppose that the government decides to impose a rent control of $1,900 per month on rental apartments in New York City. On the following graph, use the green point (triangle symbol) to shade the area representing consumers' surplus in the presence of rent control. Use the purple point (diamond symbol) to shade the area representing producers' surplus after the rent control. Then use the grey point (star symbol) to shade the area representing deadweight loss resulting from the rent control. 2600 Demand A CS w/ Rent Control 200 2200 PS w/ Rent Control MONTHLY RENT (Dollars per apartment 2000 Deadweight 100 1 Rent Coring 1000 1 Supply 40 16 24 32 QUANTITY OF APARTMENTS Miljons per month) 2000 Deadweight Loss MONTHLY RENT (Dol Rent Celing 1800 Supply 1 1600 40 0B 1,6 24 32 QUANTITY OF APARTMENTS (Millions per month) by by In the presence of the rent control, consumers' surplus per month. The price ceiling on rent causes regions in the graph to see their areas. per month and producers' surplus per month of deadweight loss. Tooltip: Click on the shaded which of the following are generally true of rent control? Check all that apply. Non price methods of rationing emerge. Everyone who needs a place to live can rent an apartment The quality of rental apartments falls. All consumers gain from rent control The quantry of available rental apartments increases Grad Now Save & Continue Continue without saying