Figure 4-3
-Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?
A) The quantity of rental housing demanded would be t.
B) The quantity of rental housing supplied would be r.
C) There would be a shortage of rental housing.
D) All of the above are true.

Question

Figure 4-3 
-Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?
A) The quantity of rental housing demanded would be t. 
B) The quantity of rental housing supplied would be r. 
C) There would be a shortage of rental housing. 
D) All of the above are true.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a higher quantity demanded (t) and a lower quantity supplied (r), leading to a shortage of rental housing.

Figure 4-3 -Figure 4-3 Indicates the Demand (D) and Supply (S) for Supply