Use the Following to Answer Question(s): Rent Controls

question 36

Multiple Choice

Use the following to answer question(s) : Rent Controls

-(Exhibit: Rent Controls) If rent controls are set at Rent₀:

• A) the shortage of rental units is Q₂ to Q₀.
• B) some renters would be willing to pay a price as high as Rent₄ for Q₀ units.
• C) no one would have to pay a higher actual price than Rent₀ nor would anyone be willing to do so.
• D) there would be a shortage of rental units, but it is impossible to tell how large the shortage is based on the information provided.