Referring to the graph, fully explain the consequences of a Maximum Price Control on the market for houses for rent. Include the following:
quantity demanded before and after the price control/
quantity supplied before and after the price control/
a problem the price control might create and a possible solution for the problem outlined.
A government measure that does not allow to price to automatically move back to the equilibrium as it would in the free market because laws of regulations prohibit this is termed a:
What is a maximum price control (ceiling price).
Explain what will happen if the government establishes a price ceiling at P3?