Use the Figure Below to Answer the Following Questions

question 71

Multiple Choice

Use the figure below to answer the following questions.

Figure 6.1.1
-Refer to Figure 6.1.1. If the demand for rental housing increases and the demand curve shifts rightward from D₀ to D₁, and there is a strictly enforced rent ceiling of $150 per room,

• A)the number of rooms rented will increase to 2,000.
• B)the number of rooms rented is 1,500.
• C)there is a housing shortage of 500 rooms.
• D)the number of rooms rented decreases to 1,000.
• E)both B and C

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Definitions:

Closing Entry

A journal entry made at the end of an accounting period to transfer the balance from temporary accounts to permanent ones, prepping the books for the next period.

Withdrawn

Refers to the act of removing funds from an account or canceling a financial transaction or operation.

Salaries

Regular payments made to employees for their service during a set period, not depending on hours worked.

Partnership

A legitimate business setup where two or more individuals collaborate in managing the business and dividing its profits.