-In the figure above, the demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve indicates an increase in demand. When a rent ceiling is set below the equilibrium price, it results in a shortage because the quantity demanded exceeds the quantity supplied at that price point. The specific number (200,000 apartments) would be determined by the difference between the quantity demanded and the quantity supplied at the $300 price point on the graph associated with the question.

-In the Figure Above, the Demand Curve Shifts Rightward from D0