The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, deadweight loss occurs because
◦ consumers place a greater value on the last apartment unit than the cost to supply it.
◦ the quantity of apartments supplied has decreased.
◦ the supplier of the last apartment unit receives a rental price that is less than the marginal cost of supplying it.
◦ All of the above.