Question: Rent controls on apartments are an example of price controls on a commodity. They keep the price artificially low (below the equilibrium price). Sketch a graph of supply and demand curves, and label on it a price p- below the equilibrium price. What effect does forcing the price down to p- have on:
(a) The producer surplus?
(b) The consumer surplus?
(c) The total gains from trade (Consumer surplus + Producer surplus)?