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
You might also like to view...
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.
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)
Which of the following relations is not correct?
A. 1 - MPC = MPS. B. APS + APC = 1. C. MPS = MPC + 1. D. MPC + MPS = 1.
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