The goal of this exercise is to get students to evaluate maximum prices in the context of housing and to show how key features can be illustrated using diagrams. As an introduction, play this clip of the impact the hurricane had. Divide the students into pairs and give them a copy of the rent control worksheet. They should answer the questions together.
Using a diagram show how the impact of Hurricane Katrina could have driven up rents in New Orleans.
On a new diagram, show the impact of a maximum price below equilibrium on supply and demand.