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BE Gradable Assignment 1Prof. RamanashettyMarks-15BE Assignment- 1Answer Any 3 questions. Each question carries 5 marks1.The Municipal Corporation of a small college town decides to regulate rents in order to reducestudent living expenses. Suppose the average annual market-clearing rent for a two bedroomapartment had been Rs.10000 per month, and rents were expected to increase to Rs.15000 withina year. The Municipal Corporation limits rents to their current Rs.10000-per-month level.Explain what will happen to the rental price of an apartment after the imposition of rent controls.Do you think this policy will benefit students? Why or why not?