The Figure Above Shows the Supply and Demand Curves in the Market

question 9

Multiple Choice

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling

• A) there is a shortage of 3,000 units.
• B) there is a surplus of 3,000 units.
• C) there is a surplus of 2,000 units.
• D) there is a shortage of 1,000 units.
• E) the market is in equilibrium.

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Definitions:

Availability

The degree to which a product, service, or resource is obtainable or accessible.

General Items

Products or commodities that are basic and nondescript, typically stocked regularly.

Critical Items

Items that are essential for the production process or meet customer demands, where their absence can significantly impact operations.

Quantity Flexibility Contract

An agreement between a supplier and a customer that allows for adjustments in the purchase order quantity within certain predefined limits.