Under Rent Controls

question 317

Multiple Choice

Under rent controls

• A) there is a shortage of rental units.
• B) the quantity supplied of rental units is greater than it would be under freely competitive markets.
• C) there is less government involvement in rental markets overall because there is a better supply of low-income housing.
• D) all renters are better off than under freely competitive markets.

---

Definitions:

MUx/MUy

Represents the marginal utility of good x divided by the marginal utility of good y, often used in consumer choice theory to analyze optimal consumption points.

Indifference Curve Analysis

A graphical representation of consumer preferences showing combinations of goods or services among which they are indifferent, demonstrating varying levels of utility.

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, portraying preferences.

Indifference Curve

A graphical representation showing different bundles of goods between which a consumer is indifferent, reflecting their preferences and utility.