In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. Now suppose that demand increases
The increase in demand results in the quantity supplied A) increasing.
B) staying the same.
C) decreasing.
D) increasing, staying the same, or decreasing depending on how much demand increases.
B
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The government sometimes creates an excess demand for a product by setting a maximum price at which the product may be sold to consumers. This is sometimes called a
A) subsidy. B) price floor. C) tax. D) price ceiling.
In the United States, between 2007 and 2012, carbon dioxide emissions fell by 12 percent, primarily because of
a. fewer highway miles driven by cars and trucks. b. expanded use of ethanol as the result of regulations imposed by the Environmental Protection Agency. c. an increase in the supply and lower prices of natural gas, leading to substitution of this cleaner fuel for coal in the generation of electricity. d. milder weather in the nation during the period, which reduced the energy demanded, and fuel used for heating and cooling.
In 1789 the percentage of the average American's income that went to pay taxes was about
a. 5%. Today it is about 50%. b. 5%. Today it is about 25%. c. 50%. Today it is about 33%. d. 25%. Today it is about 33%.
Individual Retirement Accounts and 401(k) plans make the current U.S. tax system
a. more like a consumption tax and so more like the tax system of many European countries. b. more like a consumption tax and so less like the tax system of many European countries. c. less like a consumption tax and so more like the tax system of many European countries. d. less like a consumption tax and so less like the tax system of many European countries.