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Unformatted text preview: no medallion required? b. What are the price and quantity with the medallion requirement? c. Indicate on the graph the areas representing consumer surplus and producer surplus if there were no medallion requirement. d. Indicate on the graph the areas representing consumer surplus, producer surplus and deadweight loss with the medallion requirement. 3.20 According to an article in the Economist, because of rent controls in the Indian city of Mumbai, landlords have left an estimated 40,000 properties vacant. Explain why rent controls might result in landlords leaving properties vacant. Film clip In extraordinary times rent controls are the only possible solution to shortages. Do you agree or not? Explain....
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- Spring '08