-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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Definitions:

Process Cost Accounting System

An accounting system used to track and allocate costs of production by process or department, commonly employed in manufacturing environments with continuous, homogeneous outputs.

Product Quantity

The total number of units of a product that are produced, available for sale, or sold at a given time.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Process Cost Accounting

An accounting method that accumulates costs for each process or department within a manufacturing environment.