In a Crowded City Far Away, the Civic Authorities Decided

question 7

Multiple Choice

In a crowded city far away, the civic authorities decided that rents were too high. The long-run supply function of two-room rental apartments was given by q = 15 + 3p and the long-run demand function was given by q = 237 - 3p, where p is the rental rate in crowns per week. The authorities made it illegal to rent an apartment for more than 30 crowns per week. To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand. How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

• A) 14 crowns
• B) 7 crowns
• C) 11 crowns
• D) 28 crowns
• E) 21 crowns

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Definitions:

Sexual Minorities

Individuals whose sexual orientation, gender identity, or sexual characteristics do not conform to the majority's norms within a society.

Cohabitation

The practice of living together and having a sexual relationship without being married.

Living Apart Together

A relationship practice where partners are committed to each other but choose to live in separate residences.

LGBTQ African Americans

Individuals of African American descent who identify as lesbian, gay, bisexual, transgender, queer, or questioning, facing unique cultural and societal challenges.