Which Is the MOST Correct Statement About the Impact of Rent

question 104

Multiple Choice

Which is the MOST correct statement about the impact of rent controls?

• A) The short-run supply curve for apartments is inelastic, so rent controls create larger shortages in the short run than in the long run.
• B) The short-run supply curve for apartments is inelastic, so rent controls create smaller shortages in the short run than in the long run.
• C) The long-run supply curve for apartments is inelastic, so rent controls create larger shortages in the long run than in the short run.
• D) The long-run supply curve for apartments is inelastic, so rent controls create smaller shortages in the long run than in the short run.

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Definitions:

Control Account

A summary account in the general ledger that consolidates and reflects the total of transactions recorded in subsidiary ledgers.

Customers' Names

Identifying information for individuals or entities that purchase goods or services from a business.

Subsidiary Ledger

A detailed ledger that contains the accounts of specific areas of business, supporting data for accounts in the general ledger.

Accounts Receivable

Financial obligations of customers towards a business for delivered products or services awaiting payment.