a) Draw the supply and demand for apartments. Assume in this market all apartments are identical, so there is only one equilibrium rent ("price" of an apartment). Show the rent as $800 per month.
b) Show the effect of a law preventing landlords from raising rent above $700. Does this cause a shortage or surplus? Is this a price floor or a price ceiling? How would a law preventing landlords from charging above $900 give different results. What is such a price restriction called?