The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000.
B) Black market rents might be as high as $1,300 per month.
C) The quantity of town homes supplied increases to 250,000.
D) More town homes are rented after the rent ceiling that before.
E) The quantity demanded of town homes is less than the quantity supplied.
B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
According to the Taylor rule, if output is above its full-employment level and inflation is less than 2%
A) the Fed should raise the Fed funds rate above 4%. B) the Fed should reduce the Fed funds rate below 4%. C) the Fed should make the Fed funds rate exactly 4%. D) what the Fed should do is ambiguous.
Explain what is meant by the "weighted cost of capital" and how it is used in capital budgeting
What will be an ideal response?
The presumption that ability breeds economic success finds empirical support
Indicate whether the statement is true or false