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Use the Following to Answer Question

Question 8

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Use the following to answer question: Use the following to answer question:   -(Figure: Rent Controls) Use Figure: Rent Controls.If rent controls are set at Rent<sub>1</sub>: A) the shortage of rental units is the distance Q<sub>3</sub> - Q<sub>1</sub>. B) some renters will be willing to pay a price as high as Rent<sub>4</sub> for Q<sub>1</sub> units. C) no one will have to pay a higher actual price than Rent<sub>0</sub>,nor will anyone be willing to do so. D) there will be a surplus of rental units,but it is impossible to tell how large the surplus is based on the information provided.
-(Figure: Rent Controls) Use Figure: Rent Controls.If rent controls are set at Rent1:


A) the shortage of rental units is the distance Q3 - Q1.
B) some renters will be willing to pay a price as high as Rent4 for Q1 units.
C) no one will have to pay a higher actual price than Rent0,nor will anyone be willing to do so.
D) there will be a surplus of rental units,but it is impossible to tell how large the surplus is based on the information provided.

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