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Unformatted text preview: An Introduction Slide 34 Market Equilibrium How can we make housing affordable for poor people without using rent ceilings? Chapter 3 - Supply and Demand: An Introduction Slide 35 Rent Controls Monthly Rent ($/apartment) Quantity (Millions of apartments/day) 800 2 Supply Demand 1200 1 3 What is the impact of a rent control set at $1,200/month? Chapter 3 - Supply and Demand: An Introduction Slide 36 Price Controls in the Pizza Market Price ($ per slice) Quantity (1000s of slices per day) Supply Demand Excess demand = 8,000 slices per day 4 Price ceiling = 2 3 8 12 16...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08
- Market Equilibrium