Use the Figure Below to Answer the Following Questions

question 125

Multiple Choice

Use the figure below to answer the following questions.

Figure 6.1.1
-Refer to Figure 6.1.1. Suppose the demand for rental housing is shown by demand curve D₁, and there is a rent ceiling of $150 per room. What is the highest rent that would be charged in a black market?

• A)$150 a month
• B)$175 a month
• C)$200 a month
• D)$100 a month
• E)cannot be determined from the graph, but we know it is greater than $200

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Definitions:

Subsidiary Contract

An agreement connected to a primary contract, providing supplementary terms or conditions.

Trade Fixture

An item that may be attached to a building or structure but is considered personal property because it is installed by a tenant for business purposes.

Principle Of Frustration

The legal doctrine that allows a contract to be discharged when an unforeseen event makes contractual obligations impossible, or would render the performance something radically different from that agreed upon.

Residential Tenancies

Legal agreements and regulations that govern the relationship between landlords and tenants in residential properties.