Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law:
A. If the Detroit apartment rental market is competitive.
B. If the Detroit apartment rental market is controlled by United Landlords, a single firm that owns all of the apartments in Detroit and the relevant surrounding areas.
In both cases, be sure to EXPLAIN the effects of the law on the rental price, and on the quantity of apartments rented. Also
Explain whether there is a shortage of apartments, a surplus, or neither.