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Rent ($ per month) Quantity Demanded (per month) Quantity Supplied (per month) 1,100 20,000 0 1,200 15,000 5,000 1,300 10,000 10,000 1,400 5,000 15,000 1,500 2,500 20,000 1,600 1,500 25,000 Suppose that a price ceiling of $1,200 rent per month is imposed in the Vancouver housing market, what will be the effect of this on housing market in Vancouver? Suppose that the government imposed a tax of $1000 on homeowners, show and explain the effect on consumer surplus, producer surplus, Dead Weight Loss, government revenue and market efficiency. Why would the city of Vancouver impose rent controls? Who are rent controls meant to help? Does it help those people that it is intended to help? Do you agree or disagree with the use of government-imposed rent controls? Explain (Your opinion) How government can intervene in free market? Write only government entry/interventions strategies.
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