Refer to the above graph, which shows the supply and demand for rental housing in a city.If over time the supply curve shifts to S₂ because landlords abandon rental units, but rent controls remain, the quantity demanded for housing would be at point:

Question

Quizplus · Accepted Answer

With the supply curve shifting to S₂ due to landlords abandoning rental units, the quantity supplied decreases from Q2 to Q1 and the equilibrium point shifts from E to G. At point G, the quantity demanded for housing is at its highest because of the price ceiling imposed by rent controls, while the quantity supplied is lower due to the shift in the supply curve. Therefore, the market will experience a shortage of rental units, and the quantity supplied will be at point a as it is the amount that landlords are willing and able to supply at the capped rent level.

Refer to the Above Graph, Which Shows the Supply and Demand