In the Presence of Binding Rent Controls,the Shortage of Housing

question 85

Multiple Choice

In the presence of binding rent controls,the shortage of housing is smaller

• A)the higher is the elasticity of demand for housing.
• B)the lower is the elasticity of supply of housing.
• C)the longer is the length of time the rent controls are in place.
• D)the greater is the difference between the equilibrium price and the rent-controlled price.
• E)the more elastic is the long-run supply of housing.

---

Definitions:

Rewrite

To express something in a different way or form, often aimed at achieving greater clarity.

Evaluate

The process of calculating the value of an expression, equation, or function for given variables or numbers.

Calculator

An electronic or manual device used for calculating numbers, functions, and mathematical expressions.

Exponents

Exponents indicate how many times a number, the base, is multiplied by itself.