Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?
A) There is a shortage of 150 apartments.
B) There is an excess demand for apartments.
C) The market clearing rental price of apartments is too low.
D) The market clearing rental price of apartments is less than $1000 per month.
Answer: D
You might also like to view...
If the international value of the dollar rises, the
A. aggregate demand curve will shift inward. B. aggregate supply curve will shift outward. C. U.S. price level will fall. D. All of these responses are correct.
All else equal, people with risky jobs tend to make more money than people with safe jobs
Indicate whether the statement is true or false
Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price elasticity of supply and characterize the product
A) 2; The product is elastic. B) 0.5; The product is inelastic. C) 0.2; The product is inelastic. D) 50%; The product is inelastic.
In the United States, commercial banks supply about ________% of total credit to nonfinancial businesses
A) 20 B) 75 C) 50 D) 90