6.3 Controlling Prices-Maximum and Minimum Prices

question 74

Multiple Choice

6.3 Controlling Prices-Maximum and Minimum Prices

Figure 6.6
-Refer to Figure 6.6.If the government will not allow landlords to charge more than $400 for an apartment,the deadweight loss will be equal to

• A) $2,000.
• B) $2,500.
• C) $5,000.
• D) $7,500.

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Definitions:

Real Cost

The total economic cost of production, considering all direct and indirect resources consumed, including opportunity costs.

Commodity Resources

Basic goods used in commerce that are interchangeable with other goods of the same type.

Fracking

A method of oil and gas extraction that involves injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.

U.S. Oil Supply

The total quantity of oil available for use or consumption in the United States, coming from domestic production and imports.