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

question 134

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.
-As shown in the figure above,the rent ceiling ________ consumer surplus and ________ producer surplus.

• A) decreases; decreases
• B) decreases; increases
• C) increases; increases
• D) increases; decreases
• E) decreases; does not change

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Definitions:

Experimenting

The act of conducting tests or trials to discover something unknown or test a principle.

OD Interventions

Actions and activities planned as part of organizational development to improve the organization's effectiveness.

Training Tools

Instruments or materials used to facilitate the acquisition of skills, knowledge, or competencies.

Neutral Zone

In change management, a transitional phase where the old ways have been removed but the new ways have not fully taken hold, often marked by uncertainty and creativity.