In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The rent ceiling leads to a
A) shortage of 1000 apartments.
B) shortage of 2000 apartments.
C) surplus of 1000 apartments.
D) surplus of 2000 apartments.
B
You might also like to view...
In the long run, the exchange rate between two currencies is
A) fixed. B) influenced by purchasing power parity. C) undefined. D) constant. E) determined so that the current account balance equals zero.
The law of demand says that the lower the price, the
a. greater is the quantity demanded b. greater is the demand for the good c. smaller is the demand for the good d. smaller is the quantity demanded e. larger is the supply of the good
Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie. B. her final salary and the least she would be willing to accept to star in the movie. C. her initial salary offer and her final salary, including royalties. D. her final salary and the average salary for leading actresses.
The path of ________ over a lifetime is likely to be much more stable than the path of ________.
A. saving; income B. consumption; income C. saving; consumption D. income; consumption