https://file.aiquickdraw.com/mathbot/file/1728972444049sva5l606.jpg

Please answer the question, and then the follow up question:

If a rent ceiling of

​$1 comma 0001,000

a month is​ set, the rent is

​$enter your response here

a month and

enter your response here

apartments a month are rented.

The graph provided shows the rental market in Dayton, Ohio, with rent (in dollars per month) on the y-axis and the quantity of apartments (in thousands) on the x-axis. From the graph, the intersection of the supply (S) and demand (D) curves indicates the equilibrium rent and quantity of apartments rented.

### First Question:
To determine the equilibrium rent and quantity:
- The intersection occurs at approximately **$1,200 per month** and **9,000 apartments** rented (since the x-axis is in thousands).

Thus, the rent is **$1,200** a month, and **9,000 apartments** are rented.

### Second Question (with a rent ceiling of $1,000):
A rent ceiling of $1,000 means that rent cannot rise above this price. Looking at the graph:
- At $1,000 on the y-axis, the supply curve (S) intersects at approximately **6,000 apartments**.
- The demand curve (D) intersects at **12,000 apartments** at the same price.

Since demand exceeds supply (12,000 apartments demanded but only 6,000 supplied), the result is a shortage of apartments.

Thus, with a rent ceiling of $1,000:
- The rent is **$1,000** a month.
- **6,000 apartments** are rented.

Would you like further details or have any questions? Here are five related questions:

1. What happens to the shortage of apartments when a rent ceiling is imposed below the equilibrium price?
2. How does the rent ceiling affect the quantity demanded and supplied of apartments?
3. What economic concepts explain the mismatch between supply and demand when rent is capped?
4. How would the market adjust if the rent ceiling was removed?
5. What other factors might influence the supply and demand of apartments in a city like Dayton?

**Tip**: In economics, a rent ceiling can lead to inefficiencies like shortages when set below the equilibrium price.

What is the rent and how many apartments are rented in Dayton, Ohio? If a rent ceiling of $1,000 a month is set, what is the rent and how many apartments are rented?

This example covers the rental market in Dayton, Ohio, showing how rent is determined by supply and demand. It explores what happens when a rent ceiling of $1,000 is imposed, creating a shortage of apartments as demand exceeds supply.

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