The Shortage Created by a Rent Ceiling Below the Equilibrium

question 133

Multiple Choice

The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is ________ and the supply of housing is ________.

• A) elastic; elastic
• B) elastic; inelastic
• C) inelastic; elastic
• D) inelastic; inelastic
• E) unit elastic; unit elastic

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Definitions:

Productivity

The measure of how efficiently resources are used to produce outputs.

Inputs

Resources used in the production process to generate outputs, including raw materials, labor, and capital.

Transformed Into Outputs

The process of converting inputs such as raw materials, labor, and energy into finished goods or services.

Quantitative Measure

Numerical indicators used to evaluate, compare, or track performance or production.