What would happen in the market for rental housing in your community if the local government legally mandated rents that were below the market clearing price?
A) There would be a surplus of rental housing.
B) There would be a shortage of rental housing.
C) The demand for rental housing would increase.
D) The supply of rental housing would decrease.
B
You might also like to view...
Smith' s construction of an 8-foot fence around his property will block his neighbor Johnson's scenic view. If Smith constructed a 6-foot fence, Johnson's view would not be blocked. If Johnson values his view at $1,000 and Smith values the extra 2 feet of fence at $500, then a possible resolution is that
a. Johnson makes a side payment to Smith of $750 not to build the fence so high. b. Johnson makes a side payment to Smith of less than $500 not to build the fence so high. c. Smith makes a side payment of $750 to Johnson to live with the fence. d. Smith makes a side payment of over $1000 to Johnson to live with the fence.
Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?
a. Yes, because walking out is most profitable move for the customer b. No, because walking out is an unprofitable strategy for the customer c. No, because walking out is not a credible threat d. Both B&C
All other things constant, the entry of new firms into a labor intensive industry like carpet weaving is likely to: a. shift the market demand for labor curve to the right
b. make the market demand for labor curve steeper. c. shift the demand for labor curve for each carpet producer to the left. d. shift the market supply of labor curve to the left.
Which of the following is a variable cost for a taxi driver?
a. monthly car payment b. car insurance payment c. taxi licensing fee d. fuel costs