Rent Controls Tend to Cause Persistent Imbalances in the Market

question 16

Multiple Choice

Rent controls tend to cause persistent imbalances in the market for housing because

• 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:

Compressor Drive

Refers to the mechanism that transfers power from an engine or electric motor to a compressor, enabling it to pressurize air or refrigerant.

Intake Valves

Mechanical components in an engine that open to allow the air/fuel mixture into the combustion chambers during the intake stroke.

S-Cam Brakes

Drum brake system in which the shoes are driven into the drum by rotating an S-shaped cam, spreading the shoes.

Service Brake Torque

The amount of torque applied by the service brake system to slow or stop a vehicle, typically measured at the wheels.