-In the Figure Above, the Demand Curve Shifts Rightward from D₀

question 140

Multiple Choice

-In the figure above, the demand curve shifts rightward from D₀ to D₁ so that D₁ is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be

• A) a shortage and an increase in search costs.
• B) a shortage and a decrease in search costs.
• C) a surplus and an increase in search costs.
• D) a surplus and a decrease in search costs.