In the figure above, the demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be

A) a shortage of 500,000 apartments.
B) a shortage of 400,000 apartments.
C) a shortage of 200,000 apartments.
D) no shortage nor a surplus of apartments.


C

Economics

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When people react to (or perceive) identical situations differently in different contexts, we call that the:

A. Planning fallacy B. Framing effect C. Confirmation bias D. Availability heuristic

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Holding other factors constant, an incline in the price of new capital goods will:

A. decrease investment. B. decrease national saving. C. increase investment. D. increase national saving.

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If the marginal net utility of beer is a positive number, the consumer should buy more beer in order to maximize utility.

Answer the following statement true (T) or false (F)

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