Your local government is concerned about the lack of affordable apartments in the area. To combat the problem it proposes to set the legal maximum rent on 1 bedroom apartments at $300 per month. You are asked to confirm whether or not this policy will solve the problem. You estimate that the inverse market demand is: p equals 1200 minus 2 Upper Q and the inverse market supply is: p equals Upper Q. You argue that this policy will cause an ▼ excess supply excess demand of nothing units per month (enter your answer as a whole number ). Further, you calculate that some consumers would be willing to pay as much as $ nothing a month for an apartment (round your answer to the nearest penny). You conclude that there will be a deadweight loss of $ nothing per month (round your answer to the nearest penny and enter the deadweight loss as a positive number). You add that your calculation of the welfare loss ▼ overestimates underestimates the actual loss.
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