-The Figure Above Shows the Demand for and Supply of Rental

question 160

Multiple Choice

-The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, there is

• A) a shortage of 4,000 units of rental housing.
• B) a shortage of 2,000 units of rental housing.
• C) a surplus of 3,000 units of rental housing.
• D) neither a shortage nor a surplus of rental housing.

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Definitions:

Lowest Priced Item

The item with the least cost among a selection of goods, often highlighted in sales or comparative shopping.

Economic Way

An approach to understanding human behavior and decision-making within an economic framework of scarcity and resource allocation.

Radio Station

A service that broadcasts radio waves to transmit audio or multimedia content to an audience over a particular area.

Marginal Cost

The supplementary cost that arises when one more unit of a good or service is produced.