Suppose the equilibrium price for apartments is €500 per month and the government imposes rent controls of €250. Which of the following is unlikely to occur as a result of the rent controls?
A) There may be long lines of buyers waiting for apartments.
B) Landlords may discriminate among apartment renters.
C) Landlords may be offered bribes to rent apartments.
D) There will be a shortage of housing.
E) The quality of apartments will improve.
Correct Answer:
Verified
Q1: A price floor set above the equilibrium
Q2: For a price ceiling to be a
Q3: Rent controls typically end up
A) increasing rents
Q4: If the government imposes a binding price
Q5: Government-created price floors are typically imposed to
A)
Q7: Which of the following statements about a
Q8: A €10 tax on football boots will
Q9: A price ceiling that is not a
Q10: The ultimate burden of a tax falls
Q11: Which side of the market is more
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