QD = 7200 – 10P
QS = 10P – 600
where P is monthly rent and Q is the
number of apartments. To simplify the analysis, we assume provided
apartments are identical.
price supply Free Market Subsidy A+B А Pp B E C+D p* H s С Pc D Consumer Surplus Producer Surplus Government Revenue Total Surplus G 0 A+B+C+D demand quantity Q* Qs*
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