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

question 57

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 ________ units of housing are available,and black market rents might be as high as ________ a month.

• A) 3,000; $625
• B) 6,000; $400
• C) 3,000; $550
• D) 4,000; $550
• E) 4,000; $625

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Definitions:

Cost

The amount of money required to purchase, produce, or maintain something.

Markup Percent

The extra portion put on the cost of items to cover the expenses of operation and achieve profit.

Selling Price

The amount for which something is sold, making it the price a buyer pays to acquire a product or service.

Markup Percent

The proportion added onto the purchase price of products to account for overhead costs and gain a profit.