Why Is the Long-Run Supply Curve of Rent-Controlled Apartments Typically

question 314

Multiple Choice

Why is the long-run supply curve of rent-controlled apartments typically more elastic than the short-run supply curve?

• A) In the long run, fewer new apartments are built, and older apartments are torn down or turned into condominiums.
• B) In the long run, many more new apartments are built and this increases the supply of rent-controlled apartments.
• C) In the long run, rent controls are always removed.
• D) In the long run, the shortage of rent-controlled apartments becomes significantly less.

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Definitions:

Ester Hydrolysis

A chemical reaction in which an ester is converted into its constituent alcohol and acid by the action of water or a hydroxide ion.

Major Product

The main product formed in a chemical reaction, which is generated in greater amounts compared to any other product.

Major Product

The chemical species that is formed in the largest amount from a chemical reaction, indicating the most favorable pathway under the given reaction conditions.

Major Organic Product

The primary chemical product formed in the highest yield during a chemical reaction, especially in organic synthesis reactions.