29. Kanye has just been elected mayor of Ann Arbor. His primary concern is the affordability...

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29. Kanye has just been elected mayor of Ann Arbor. His primary concern is the affordability of rental housing for his citizens. The table below represents supply and demand for rental apartments in Ann Arbor, Monthly Quantity Rent $1,600 $1,400 400 $1,200 800 $1,000 1,200 $800 1,600 $600 2,000 $400 2,400 2,800 $200 Demanded A) $40,000 B) $80,000 C) $120,000 D) $240,000 E) $480,000 Quantity Supplied 1.800 1,600 1,400 1,200 1,000 800 600 400 Suppose that, initially, the market for rental apartments in Ann Arbor is at the efficient outcome. Kanye then imposes a price ceiling on rental apartments in Ann Arbor at $600 per month. Use the information provided to calculate the size of the deadweight loss associated with this market when the price ceiling is imposed. (Hint: It might help to draw a graph. You can assume that the supply and demand curves are straight lines.) 29. Kanye has just been elected mayor of Ann Arbor. His primary concern is the affordability of rental housing for his citizens. The table below represents supply and demand for rental apartments in Ann Arbor, Monthly Quantity Rent $1,600 $1,400 400 $1,200 800 $1,000 1,200 $800 1,600 $600 2,000 $400 2,400 2,800 $200 Demanded A) $40,000 B) $80,000 C) $120,000 D) $240,000 E) $480,000 Quantity Supplied 1.800 1,600 1,400 1,200 1,000 800 600 400 Suppose that, initially, the market for rental apartments in Ann Arbor is at the efficient outcome. Kanye then imposes a price ceiling on rental apartments in Ann Arbor at $600 per month. Use the information provided to calculate the size of the deadweight loss associated with this market when the price ceiling is imposed. (Hint: It might help to draw a graph. You can assume that the supply and demand curves are straight lines.)