Use the following to answer question:
-(Table: Market for Apartments)Use Table: Market for Apartments.If a price ceiling of $700 is imposed on this market,the result will be an inefficiency in the form of a _____ million apartments.
A)surplus of 0.6
B)shortage of 0.6
C)surplus of 0.2
D)shortage of 0.2

Question

Use the following to answer question: 
-(Table: Market for Apartments)Use Table: Market for Apartments.If a price ceiling of $700 is imposed on this market,the result will be an inefficiency in the form of a _____ million apartments.
A)surplus of 0.6 
B)shortage of 0.6 
C)surplus of 0.2 
D)shortage of 0.2

Quizplus · Accepted Answer

Looking at the table, we can see that at a price ceiling of $700, the quantity demanded is 4 million apartments, while the quantity supplied is only 3.4 million apartments. This means there is a shortage of 0.6 million apartments (4 - 3.4 = 0.6).

Use the Following to Answer Question