Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 6 - Market Efficiency and Government Intervention - Exercises - 6.3 Controlling Prices - Maximum and Minimum Prices - Page 147: 3.4

Answer

\$175; \$350; \$50

Work Step by Step

A consumer half way between c and a on the demand curve is willing to pay \$475, which is \$175 more than the maximum \$300. A producer on the supply curve half way between b and a would be willing to rent an apartment at \$350, but is not allowed to since this is \$50 above the maximum.
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