(Figure: Rent Controls in the Market for Apartments in New York City) Use Figure: Rent Controls in the Market for Apartments in New York City. If a rent ceiling is set at $900:
A)the shortage of rental units will be the distance 2.1-1.9 million, or 0.2 million units.
B)some renters will be willing to pay a price as high as $1,200 for available rental units.
C)no one will have to pay a higher actual price than $800, nor will anyone be willing to do so.
D)there will be a surplus of rental units, but it is impossible to tell how large the surplus is based on the information provided.

Question

(Figure: Rent Controls in the Market for Apartments in New York City) Use Figure: Rent Controls in the Market for Apartments in New York City. If a rent ceiling is set at $900: 
A)the shortage of rental units will be the distance 2.1-1.9 million, or 0.2 million units. 
B)some renters will be willing to pay a price as high as $1,200 for available rental units. 
C)no one will have to pay a higher actual price than $800, nor will anyone be willing to do so. 
D)there will be a surplus of rental units, but it is impossible to tell how large the surplus is based on the information provided.

Quizplus · Accepted Answer

At a rent ceiling of $900, the quantity demanded is 1.9 million units, and the quantity supplied is 2.1 million units, resulting in a shortage of rental units equal to the difference between the quantity demanded and quantity supplied, which is 0.2 million units.