How Does Rent Control Tend to Cause Persistent Imbalances in the Market

question 148

Multiple Choice

How does rent control tend to cause persistent imbalances in the market for housing?

• A)Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B)Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C)Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D)Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Operating

Refers to the day-to-day activities and core functions directly related to a company's primary business operations, such as sales and service delivery.

Cost Concept

An accounting principle that states assets should be recorded at their cost at the time of acquisition.

Revaluing Assets

The process of adjusting the book value of a company's assets to their current market value.

Financial Statement

A documented record that outlines the financial activities and condition of a business, entity, or individual.