Assume That There Is Rent Control in Chicago

question 36

Multiple Choice

Assume that there is rent control in Chicago.Which of the following is true?

• A) All consumers in the rental market will benefit because the rent will be lower.
• B) The total surplus will fall because there will be a shortage of apartments.
• C) The total surplus will rise because consumer surplus will increase.
• D) Consumer surplus will increase and as a result all consumers in the rental market will benefit.

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Definitions:

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services.

Financing Activities

Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.

Net Cash

The difference between a company's total cash inflows and outflows in a given period.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as selling products and services, which generate most of its revenue and cash flows.