5 Number of Apts Number of Apts Rent/Month Demanded/Month Supplied/Month 1000 20,000 100,000 1200 120,000 Draw the demand and supply curves for apartments What is the equilibrium rent per month? At this rent, what is the number of apartments demanded and supplied per month? Suppose a ceiling on rents is set at $400 per month Characterize the situation that results from this policy At the rent ceiling, how many apartments are demanded? How many are supplied? How much are people willing to pay for the number of apartments supplied at the ceiling? Describe the arrangements to which this situation might lead Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 229