Use the table below to answer the following questions.
Table 6.1.1

-Refer to Table 6.1.1,which gives the demand schedule and the supply schedule for the apartment market in Anytown,Alberta.If a rent ceiling of $300 is imposed in the apartment market,then
A)the maximum amount someone is willing to pay for an apartment in the black market is $500.
B)there is a surplus of 40 apartments.
C)the supply of apartments will increase.
D)the demand for apartments will decrease.
E)the quantity of apartments supplied is 60 units.

Question

Use the table below to answer the following questions.
Table 6.1.1
 
-Refer to Table 6.1.1,which gives the demand schedule and the supply schedule for the apartment market in Anytown,Alberta.If a rent ceiling of $300 is imposed in the apartment market,then
A)the maximum amount someone is willing to pay for an apartment in the black market is $500. 
B)there is a surplus of 40 apartments. 
C)the supply of apartments will increase. 
D)the demand for apartments will decrease. 
E)the quantity of apartments supplied is 60 units.

Quizplus · Accepted Answer

A rent ceiling below the equilibrium price creates a shortage, leading to a black market where the maximum price someone is willing to pay can be higher than the ceiling, such as $500.

Use the Table Below to Answer the Following Questions