If the Government Imposes a Ceiling Price on Apartment Rents

question 83

Multiple Choice

If the government imposes a ceiling price on apartment rents, we would expect to observe all of the following except one.Which is the exception?

• A)an increase in the number of new apartment complexes being built
• B)long waiting lists for apartment seekers
• C)lower maintenance of existing apartments
• D)conversion of some apartment complexes to condos
• E)a shortage

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, typically expressed as an annual percentage rate.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Expected-Rate-of-Return Curve

A graphical representation that illustrates the relationship between the expected return of an investment and its associated risk.

Interest-Rate Cost-of-Funds Curve

A curve that illustrates the relationship between the interest rates on loans or deposits and the total amount of funds borrowed or lent.