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    Excess Demand for Apartments with a Price Ceiling

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    Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by

    Qs = -1000 + 20P

    Qd = 50000 - 10P

    What will be the excess demand for apartments once the price ceiling is implemented?

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    Solution Summary

    This solution addresses the excess demand question and provides all calculations.