Which of the Following Is the Most Correct Statement About

question 25

Multiple Choice

Which of the following 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.