Refer to the Accompanying Table to Answer the Following Questions

question 155

Multiple Choice

Refer to the accompanying table to answer the following questions.

-If rent control is established at $1,750,what would be the amount of disequilibrium in the apartment market?

• A) There would be a shortage of 23,500 apartments.
• B) There would be a surplus of 23,500 apartments that is reduced,over time,as individuals rent apartments in the illegal black market.
• C) There would be neither a shortage nor a surplus.
• D) There would be a surplus of 23,500 apartments that is eliminated through individuals renting apartments in the illegal black market.
• E) There would be a surplus of 23,500 apartments that increases as houses and condominiums are converted into apartments.

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