-In the figure above, originally the apartment rental market is in short- run and long- run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The rent ceiling leads to a

Question

Quizplus · Accepted Answer

A rent ceiling set below the equilibrium price (in this case, $500 when the equilibrium rent is $600) creates a shortage because the quantity demanded exceeds the quantity supplied at that price level. This results in a shortage of apartments, not a surplus, as more people are willing to rent at the lower price than there are apartments available. Choice B correctly identifies the specific outcome given by the scenario.

-In the Figure Above, Originally the Apartment Rental Market Is