1. Consider the market fo

1. Consider the market fo

1. Consider the market for on-Campus housing at the University Of Regina. The demand andsupply schedules for on-campus housing are given in the table below:Price ($ per month)   Quantity Demanded                 Quantity Supplied1100                           20                                            1001000                           30                                            90900                             40                                            80800                             50                                             70700                             60                                             60600                             70                                              50500                             80                                               40(a) In a free market for rental housing, what is the equilibrium price and quantity? Plot thedemand and supply schedules on a diagram. Label the axes and indicate the equilibriumon the graph.(b) Now suppose the University decides to impose a ceiling on the monthly rental price,what is the highest level at which such a celling could be set, in order to have any effecton the market? Explain your answer.(c) Suppose the maximum rental price is set to equal to $500 per month. Describe theeffect on the rental housing market. Explain the economic dynamics that can actuallyshrink the supply of housing?(e) Suppose the black market develops in the presence of rent controls in (c). What is theblack market price that would exist if all of the quantity supplied were sold on the blackmarket?