One Strategy I Might Use to Be Elected Mayor of a University

question 115

Multiple Choice

One strategy I might use to be elected mayor of a university town is to place a binding price ceiling on rent for student apartments.What will happen if I get elected and am able to pass such a law?

• A) The price ceiling will increase the number of apartments available for rent.
• B) The price ceiling will cause the demand curve to shift.
• C) The price ceiling will cause the supply curve to shift.
• D) The price ceiling will decrease the number of students who want to rent an apartment.
• E) The price ceiling will cause students to sleep in their cars or to move in with their friends because they won't be able to find a place to live.

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