-The Above Figure Shows Supply and Demand Curves for Apartment

question 72

Multiple Choice

-The above figure shows supply and demand curves for apartment units in a large city.If the city government passes a law that establishes $350 per month as the legal maximum rent,deadweight loss occurs because

• A) consumers place a greater value on the last apartment unit than the cost to supply it.
• B) the supplier of the last apartment unit receives a rental price that is less than the marginal cost of supplying it.
• C) the quantity of apartments supplied has decreased.
• D) All of the above.

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