If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the:
A) supply of apartment units will shift leftward.
B) supply of apartment units will shift rightward.
C) quantity of apartment units supplied will rise.
D) quantity of apartment units supplied will fall.

Question

Quizplus · Accepted Answer

The law of supply states that, other things being equal, an increase in price results in an increase in quantity supplied, and a decrease in price results in a decrease in quantity supplied. If the law requires lowering rent, the price landlords receive decreases, leading to a decrease in the quantity of apartment units supplied.

If the Law Requires Apartment Building Owners to Lower Rent