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

question 57

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 ________ units of housing are available,and black market rents might be as high as ________ a month.

• A) 3,000; $625
• B) 6,000; $400
• C) 3,000; $550
• D) 4,000; $550
• E) 4,000; $625

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Definitions:

Warrants

Legal documents issued by a court or government authority that give law enforcement the power to perform certain actions, such as arrests or searches; also refers to financial instruments granting the right to purchase stock at a specified price.

De Facto Corporation

A business entity that operates like a corporation without formal incorporation status, but is treated as a corporation by law under certain conditions.

Incorporation Statute

Laws and regulations governing the process of establishing a corporation and outlining its legal status and structure.

Corporation by Estoppel

A principle where a company is treated as if it is incorporated for purposes of a particular transaction, even though it technically may not be, to prevent injustice or unfairness.