New York City Has Been Experiencing a Housing Emergency for Quite

question 5

Multiple Choice

New York City has been experiencing a housing emergency for quite some time. Apartments are difficult to come by. In fact, the vacancy rate has been below 5 percent since World War II. The most likely cause of the housing emergency is:

• A) a price floor on rent higher than equilibrium price.
• B) a price ceiling on rent lower than equilibrium price.
• C) too high incomes in New York City.
• D) a lack of a rationing mechanism to distribute existing apartments.

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Definitions:

Limited Liability Companies

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Distributions

The payment of dividends or other assets to a company's shareholders as determined by the board of directors.

Management Rights

The rights retained by employers, allowing them to operate and manage their business without interference from the workforce.

Co-ownership

The state or condition where two or more parties hold property jointly, sharing rights and responsibilities.