Suppose that, at a rental rate of $1500 per month, 700 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?
A. There is an excess demand for apartments.
B. The market clearing rental price of apartments is too low.
C. The market clearing rental price of apartments is less than $1500 per month.
D. There is a shortage of 100 apartments.
Answer: C
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