If a City Government Were to Impose a Price Ceiling

question 285

Multiple Choice

If a city government were to impose a price ceiling to bring down rental prices of apartments in the downtown area

• A) quantity supplied would increase.
• B) supply would increase.
• C) an illegal rental market would likely emerge.
• D) quantity demanded would decrease.

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Definitions:

Income

The financial gain received by an individual or entity, often measured as salary, wages, or profits.

Perfect Equality Line

A hypothetical line on a graph representing a situation where everyone has exactly the same income or wealth, demonstrating absolute equality.

Points

In various contexts, points can refer to units of measurement, aspects of discussion, or rewards accumulated from transactions.

Straight Line

The shortest distance between two points, often used to describe a method of linear depreciation in accounting.