Suppose the Government Imposes a Price Ceiling on Rental Housing

question 45

Multiple Choice

Suppose the government imposes a price ceiling on rental housing that is below the market-clearing price.The resulting shortage will be

• A)greater the more recently the controlled price went into effect.
• B)smaller the longer the controlled price has been in effect.
• C)greater the more elastic the demand for rental housing.
• D)smaller the more elastic the demand for rental housing.
• E)diminished over time.

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Definitions:

Somatic Marker Hypothesis

Neurologist Antonio Damasio’s idea that the bodily (somatic), emotional component of thought is a necessary part of problem solving and decision making.

Emotional Reactions

Emotional reactions are immediate responses of the emotional system to stimuli, characterized by feelings that range from happiness and joy to sadness, anger, fear, or disgust.

Right Frontal Lobes

Regions of the brain located in the right frontal cortex involved in managing emotions, making decisions, and controlling social behaviors.

Phineas Gage

A railway worker from the 19th century whose survival of a severe brain injury helped advance the understanding of brain function and personality change.