The Figure Above Shows the Supply and Demand Curves in the Market

question 9

Multiple Choice

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling

• A) there is a shortage of 3,000 units.
• B) there is a surplus of 3,000 units.
• C) there is a surplus of 2,000 units.
• D) there is a shortage of 1,000 units.
• E) the market is in equilibrium.

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Definitions:

Criminal Prosecution

The process by which a person is charged, tried, and potentially convicted by the state for committing a criminal offense.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressures against the person.

Illegal Contract

An agreement that is void and unenforceable by law due to its nature of involving activities that are against the law.

Voidable

Describes a legal agreement that could be declared invalid by one of the parties due to certain deficiencies or circumstances.