Which of the Following Is a Positive Statement

question 113

Multiple Choice

Which of the following is a positive statement?

• A)Low rents restrict the supply of housing.
• B)Low rents are better for a city than high rents.
• C)Housing costs too much.
• D)Owners of apartment buildings ought to be free to charge whatever rent they want.
• E)Government should control the rents that apartment owners charge.

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Definitions:

Consumer Surplus

The difference between the maximum amount that consumers are willing to pay for a good or service and the amount they actually pay.

Consumer Surplus

The benefit obtained by consumers because they are able to purchase a product for a price that is less than the maximum price that they are willing to pay.

Equilibrium Price

The rate at which the amount of products offered matches the amount of products consumers want.

Unregulated Market

A market where the government does not impose price controls, quotas, or other restrictions on the forces of supply and demand.