No Deadweight Loss from Rent Control? Like other fruit flies, Frudo has an expected lifespan of 37 days. According to Frudo, “If my assumptions are correct, a rent-control law implemented today will...

No Deadweight Loss from Rent Control? Like other fruit flies, Frudo has an expected lifespan of 37 days. According to Frudo, “If my assumptions are correct, a rent-control law implemented today will simply redistribute income from property owners to consumers. There will be no deadweight loss, at least not in my lifetime.”

a. What is Frudo’s key assumption?

b. Draw a complete graph to show his assumption and logic.

c. The typical elephant has an expected lifespan of 60 years. How would its analysis of rent control differ from Frudo’s? Illustrate with a complete graph