Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent control; in the other city (Halftrack) one-half of the apartments are rent controlled
Which of the following is most likely to be true?
A) It will be easier to find an affordable apartment in Halftrack, either a rent-controlled apartment or another apartment, at a reasonable price.
B) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control.
C) It will be easier to find an affordable apartment in Albany since rents will be low across the board.
D) It will be impossible to rent an apartment in either city at any price.
B
You might also like to view...
A cartel is a group of firms
A) acting separately to limit output, lower price, and decrease economic profit. B) acting together to limit output, raise price, and increase economic profit. C) legally fixing prices. D) acting together to erect barriers to entry. E) that compete primarily with each other rather than the other firms in the market.
If a good has a price elasticity of demand coefficient less than one, then:
A. this good has an elastic demand. B. this good has an inelastic demand. C. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded. D. the demand curve will be vertical.
A positive cross-elasticity of demand for two products indicates that they are:
A. normal goods. B. substitutes. C. complements. D. independent goods.
Keynesian macroeconomic theory may be summarized by the idea that demand creates _____.
Fill in the blank(s) with the appropriate word(s).