Problem
Suppose the supply of rental apartments is completely inelastic in the short run. Show that imposing a ceiling on rents that is below the equilibrium rent does not cause any inefficiency by demonstrating that total consumer and producer surplus is not reduced by the rent ceiling. If the supply of rental apartments is more elastic in the long run, explain why a ceiling on rents would reduce the total surplus.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.