1. Arrow up or down: In Figure, rent control _____ the quantity of apartments, _____ producer surplus, _____ consumer surplus, and _____ the total market surplus.

2. In Figure, rent control prevents a total of _____ mutually beneficial transactions for consumers on the demand curve between point’s _____ and _____ and producers on the supply curve between points and _____.

3. In Figure suppose rent control is partly relaxed, with the maximum price rising from $300 to $350. The quantity of apartments on the market will increase from _____ to _____.

4. In Figure a consumer who is on the demand curve halfway between points c. and a. would be willing to pay $ _____ above the controlled price to get an apartment. A producer who is on the supply curve halfway between points b. and a. would be willing to supply an apartment at a price of $ _____, or _____ above the maximum price.

5. The deadweight loss from rent control is shown by the area between the_____ curve and the _____ curve from the quantity _____ to the quantity _____.
6. Excess Supply from a Minimum Milk Price. In the equilibrium in the powdered milk market, the quantity is 100 million units and the price is $9.00 per unit. The price elasticity of demand is 0.80 and the price elasticity of supply is 2.50. Suppose the government imposes a minimum price of $9.90.
a. Draw a graph to show the market effects of the minimum price.
b. At the minimum price, the quantity of powdered milk supplied is _____ million units, the quantity demanded is _____ million units, and the excess supply is _____ millionunits.

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$900 $900 Supply 550 Supply Consumer E. surplus surplus d 400 Producer surplus 300 ucer surplus Demand 67 1,000 Quantity of apartments (A) Market Equilibrium 700 1,000 Quantity of apartments (B) Rent Control $900 $900 Supply 550 Supply Consumer E. surplus surplus d 400 Producer surplus 300 ucer surplus Demand 67 1,000 Quantity of apartments (A) Market Equilibrium 700 1,000 Quantity of apartments (B) Rent Control $900 $900 Supply 550 Supply Consumer E. surplus surplus d 400 Producer surplus 300 ucer surplus Demand 67 1,000 Quantity of apartments (A) Market Equilibrium 700 1,000 Quantity of apartments (B) Rent Control $900 $900 Supply 550 Supply Consumer E. surplus surplus d 400 Producer surplus 300 ucer surplus Demand 67 1,000 Quantity of apartments (A) Market Equilibrium 700 1,000 Quantity of apartments (B) Rent Control