Refer to the Accompanying Table to Answer the Following Questions

question 155

Multiple Choice

Refer to the accompanying table to answer the following questions.

-If rent control is established at $1,750,what would be the amount of disequilibrium in the apartment market?

• A) There would be a shortage of 23,500 apartments.
• B) There would be a surplus of 23,500 apartments that is reduced,over time,as individuals rent apartments in the illegal black market.
• C) There would be neither a shortage nor a surplus.
• D) There would be a surplus of 23,500 apartments that is eliminated through individuals renting apartments in the illegal black market.
• E) There would be a surplus of 23,500 apartments that increases as houses and condominiums are converted into apartments.

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Definitions:

Operating Expenses

Recurring expenses incurred during normal business operations, such as rent, utilities, and payroll.

Long-Lived Asset

A type of tangible or intangible asset that is used in operations and is expected to provide economic benefits for several accounting periods.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time.

Disposal

Refers to the process of discarding, selling, or removing an asset from the company's records.