(Figure: Rent Controls) Use Figure: Rent Controls. If rent controls are set at R
ID: 1140396 • Letter: #
Question
(Figure: Rent Controls) Use Figure: Rent Controls. If rent controls are set at Rents Figure: Rent Controls Rent (per period) Rent4 Rents Rent2 Rent1 Rento Qo Q1 Q2 Q3 Q4 Quantity of rental units (per period) the shortage of rental units is the distance Q3-Q1 some renters will be willing to pay a price as high as Rents for Q3 units. ll remain at Rent O rent wi O no one will have to pay a higher actual price than Rento, nor will anyone be willing to do so. Done Quiz- Chapter 5 awould result from the difference between points 4. (Figure: Price Controls) Use Figure: Price Controls. An effective price floor would be at price and a Figure: Price Controls Price Supply Demand Quantity O b; shortage; fand e D b; surplus; fand e d; shortage; /and h O ; surplus; fand eExplanation / Answer
Ans) the correct option is rent will remain at rent2.
Since rent 3 is set above equilibrium so this rent control will be ineffective so the rent will remain at rent2.
Ans) the correct option is b; surplus ; f and e.
The effective price floor will be at above the equilibrium price which leads to a surplus of f and e because quantity supplied exceeds quantity demanded.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.