Answer Happy

Part 1 of a 2-part question: Suppose the market demand and supply curves for "rental housing" are: Demand: Q=10 - 5P Supply: Q=5P (Note that the numbers are scaled down for easy computation!) If the market for rental housing is currently in unregulated, competitive equilibrium, total social welfare in this market is: ОО O 1.25 0 2.5 O 5 O 10
Part 2 of a 2-part question: Following up on the preceding question, now suppose that a price ceiling of $0.50 is imposed on the market for rental housing with the goal of helping consumers. With this price ceiling in place, deadweight loss (DWL) in the rental housing market is: 0.625 O 125 O 25 o unchanged relative to the preceding question