and E manage to get an apartment, while F, G, and H are frozen out.
4
THE MARKET
(Ch. 1)
(a) If subletting is legal—or, at least, practiced—who will sublet to whom in equilibrium? (Assume that people who sublet can evade the city rentcontrol restrictions.)
E, who is willing to pay only F,
$10 for an apartment would sublet to who is willing to pay $18.
(b) What will be the maximum amount that can be charged for the sublet payment?
$18. A,
(c) If you have rent control with