The city council of a university town are concerned about the high rents being charged to college students. they're considering placing a $350 rent ceiling on apartments in the city. an economist at the university estimates the demand and supply curves for this market to be: q = 6,000 - 8p q = 400 + 6p where p is monthly rent, qc is the quantity of apartments demanded, and qs is the quantity of apartments supplied. a. calculate the equilibrium price and quantity that would prevail without the price ceiling. draw a graph showing this result. b. what are the new price and quantity demanded/quantity supplied after the imposition of the price ceiling? show this result on your graph. calculate the welfare measures when moving from the free-market to the price ceiling solution-specifically, find measures for changes in consumer surplus, producer surplus, and the deadweight loss.

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces