When rent controls establish a legal maximum rental rate below the equilibrium rental rate
A. quantity supplied exceeds quantity demanded.
B. supply exceeds demand.
C. quantity demanded exceeds quantity supplied.
D. demand exceeds supply.
Answer: C
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Which of the following is an example of the effect of a price floor?
A. Scalping of Super Bowl tickets B. Surplus cheese C. The New York city housing shortage D. Black markets E. Milk shortages
To set a tax rate at the appropriate level to maximize its tax revenues, a government must engage in
A) static tax analysis. B) dynamic tax analysis. C) debt-free tax analysis. D) ad valorem tax analysis.
By being responsible for their actions
A) moral hazard becomes asymmetric information. B) employees are being given a property right. C) employees find it easier to free ride on the performance of others. D) the stock market is selling the claims of agents.
Which of the following examples reflects monopolistic competition?
a. After modernizing equipment, Mitchell, Inc operates at the lowest average cost of production. b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity. c. Long-run adjustments allows Gable, Inc to operate at 100 percent capacity. d. Production refinements allow Jones, Inc. to operate at a level where average total cost is minimized.