(Solved): Adjust the following graph to dlustrate the rent increase by either using the black point (cross sy ...

Adjust the following graph to dlustrate the rent increase by either using the black point (cross symbol) or by shifting the supply and dernand curvess. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. The Market for Rental Properties in Los Angeles and Orange Counties As you can see from the artide in the prior problem, "Rents Hit All- ime Highs amid Job Growth and Low Vacancy Rates," some people. move out as a result of rent increases, whale others are ready to pily an even higher rent, Rent centrol adds yet another aspect by setting a ceiling on what the rental price can ultimately rise to. The supply and demand model can be used to illustrate the mechanism that leads to all these different market outcomes, Consider the market for rental properbes in Los Angeles and Orange counties in Southern California. Suppose that while average eamings increased by about. $$10\%$$ in Los Angeles and Orange counties, the average rent has increased by $$20\%$$. (Assame for a monent that there are no rent control regulations.) Adjust the following graph to Wustrate the rent increase by ether using the biack point (cross symbol) or by shiftiog the supply and demand curves. Hint: Determine whether this scenario leads to a shat in the demand/supply curve on a movement along the demand/supply curve. As a result of the $$20\%$$ rent increase, the number of vacant units dernanded to ynits. Adjust the previous graph to show the effect of the increatse in earnings. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. The increase in earnings results in a new equilibium rent of units. per month and a new equilibram number of vacancies of Now suppose that the state of Caldornia introduces rent contref by setting the maximum rent at $$\$2,400$$ per month. On the previous graph, use the grey poinit (star symbod) to iedicate the number af vacmcies dernanded, Then use the tan point (dash symbal) to moicate the number of vacancies supplied. As a resuit of rent control; there is al As a result of the $$20\%$$ rent increase, the number of vacant units demanded Adjust the previous graph to show the effect of the increase in earnings: Hint: Detemine whether this scenario leads to a shift in the demand/supply curve un ar anovement along that demand/supply curve. The increase in earnings resalts in a new equilbnum rent of per month and a new equlibrism number of vacancies of units. Now suppose that the state of Calforma introduces rent control by setting the maximum rent at $$\$2,400$$ per menth. On the previous graph, use the grey point: (star symbol) to indicate the number of vaconcies demanded. Then use the tan point (dash symbol) to indicate the number of vacancies supplied. As a result of rent control, there is a Now suppose that the state of California introduces reat control by setting the maximum rent at $$\$2,400$$ per month. On the previous graph, use the grey ymbol) to indicate the number of vacancies demanded. Then use the ean point (dash symbol) to mdicate the number of vacithcies suf As a result of rent control, there is $$\mathrm{A}$$