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1. True / False. Introducing (binding) rent control into the market for rental apartments causes a...

1. True / False. Introducing (binding) rent control into the market for rental apartments causes a loss of consumer surplus for certain and possibly producer surplus as well. Explain. Include a graph in your answer.

2. True / False. At the current price of $9 per year, UB Transportation estimates that the price elasticity of demand for parking is QD,P = −2. If the goal of UB Transportation is to maximize their parking revenue, they should raise the price of parking. Explain.

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