In an attempt to address concerns about housing affordability, the government is proposing to introduce rent control, which would enforce a price ceiling on the amount that tenants have to pay for rent. The proposed price ceiling is $250 per week. The market equilibrium price is $347 per week and the equilbrium quantity of properties available for rent is 10,000. The supply of rental properties at the price ceiling is 5,000 whilst the willingness of tenants to pay for rent is $418 per week at the quantity of 5,000. What is the dead weight loss as a result of the price ceiling in dollars? Answer to the nearest whole dollar

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To calculate the deadweight loss DWL resulting from the price ceili... View the full answer