New York City has been experiencing a housing emergency for quite some time. Apartments are difficult to come by. In fact, the vacancy rate has been below 5 percent since World War II. The most likely cause of the housing emergency is:
A. a price ceiling on rent lower than equilibrium price.
B. too high incomes in New York City.
C. a lack of a rationing mechanism to distribute existing apartments.
D. a price floor on rent higher than equilibrium price.
Answer: A
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