The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the quantity of housing rented in Appleville is
A) 200 units below the efficient level.
B) 100 units above the efficient level.
C) 300 units below the efficient level.
D) efficient.
A
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If we were to compare the monopolistically competitive firm's long-run outcome to that of a perfectly competitive one, we would conclude that the monopolistically competitive firm:
A. earns the same profit as a perfectly competitive firm. B. creates less consumer surplus. C. produces more output. D. All of these statements are true.
There are many reallife examples of factorintensity differences across the same industries in different nations. How does the HeckscherOhlin model handle this?
A. The HO model makes no assumptions about different factor intensities. B. The HO model assumes that all firms require equal amounts of capital and labor just to be on the safe side. C. The HO model ignores the possibility of different factor intensities and instead assumes that each industry has the same factor intensity in every nation. This assumption enables the model to predict trade based on other factors. D. Actually, the factorintensity reversal issue does not change the predictive value of the model.
The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded. In this case,
What will be an ideal response?
People's best guesses about returns on assets are called
A. expected returns. B. the term structure of returns. C. liquidity. D. risk.