The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling the quantity of housing supplied is ________ units,the quantity demanded is ________ units,and the quantity rented is ________ units.
A) 3,000; 6,000; 3,000
B) 3,000; 6,000; 6,000
C) 3,000; 6,000; 4,000
D) 3,000; 3,000; 3,000
E) 4,000; 4,000; 4,000

Question

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling the quantity of housing supplied is ________ units,the quantity demanded is ________ units,and the quantity rented is ________ units.
A) 3,000; 6,000; 3,000 
B) 3,000; 6,000; 6,000 
C) 3,000; 6,000; 4,000 
D) 3,000; 3,000; 3,000 
E) 4,000; 4,000; 4,000

Quizplus · Accepted Answer

With a rent ceiling, the quantity of housing supplied is determined by the price at which the ceiling is set, which is lower than the equilibrium price. This leads to a lower quantity supplied than demanded. However, the quantity rented cannot exceed the quantity supplied, so it matches the quantity supplied, not the higher quantity demanded.

The Figure Above Shows the Supply and Demand Curves in the Market