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Suppose That, at a Rental Rate of $1000 Per Month

question 60

Multiple Choice

Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then true?


Definitions:

Price Ceiling

A legally imposed maximum price on a good or service, intended to keep prices low for buyers.

Shortage/Surplus

A market condition where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus).

Price Floor

A government or group-imposed limit that prevents prices of goods or services from falling below a certain level.

Shortage/Surplus

A condition in a market where the quantity demanded is greater or less than the quantity supplied at the current price.

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