In an economy, the supply and demand functions of the residential rental market are as follows: Qs = 5,000 + 2P Qd = 20,000 – P where P is the monthly rent for a flat and Q is the quantity of flats in the residential rental market. a. Find the equilibrium rent and equilibrium quantity of the rental market. b. To help improve the livelihood of tenants, the government sets up a rent control at $3,000. Find the amount of shortage. Show your workings. c. Provide THREE reasons for failing to improve the livelihood of tenants with the rent control. Explain your answers briefly.

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