A black market for housing exists because of a rent ceiling. The rent for housing in the black market is
A) the same as the equilibrium rent.
B) lower than the ceiling rent.
C) somewhere between the ceiling rent and the maximum rent a tenant is willing to pay.
D) somewhere between zero and the equilibrium rent.
E) not defined because the market is not legal.
C
You might also like to view...
If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
a. price elastic. b. price inelastic. c. perfectly inelastic. d. unitary elastic.
The income multiplier's power to effect change in national income depends on the marginal propensity to consume
Indicate whether the statement is true or false
Market price is determined by
A. both supply and demand B. supply only C. demand only D. neither supply nor demand
Using two graphs, illustrate how a positive technological change in the market for notebook computers could eliminate short-run economic profit for a firm in that market. On the first graph, use a supply and demand graph to illustrate the positive
technological change. On the second graph, use demand, ATC, MC, and MR curves to illustrate the elimination of economic profit resulting from the positive technological change. Explain what is taking place in each graph. What will be an ideal response?