ECO 1104 Lecture Notes - Lecture 11: Deadweight Loss, Canada Health Transfer, Hydro One

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

A price ceiling, consumer surplus, and producer surplus (designed to accommodate chapter 7: the corresponding price based on the demand for apartments equation: The corresponding price based on the supply of apartments equation: 1500: supply and demand curve with the price ceiling of . c) In the absence of rent control, the equilibrium quantity would be 90 and the price would be . To find the answer algebraically we have to find their intersection. Since for equilibrium both quantity for supply and demand has to be same we will use q instead od qs and qd. With the rent control ceiling, 80 units are being rented (this is the amount that producers are willing to supply at this price). Yes, there is a shortage of 20 units. 2 e) the amount of total consumer surplus and producer surplus in this market has gone down with the rent control in effect.