FIGURE 5-4
-Refer to Figure 5-4.Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city.In the short run we can expect the shortage of apartments to be ________ units.

Question

Quizplus · Accepted Answer

At a rent-controlled price of $600, the quantity demanded is 1,000 units and the quantity supplied is 700 units. The shortage is therefore 1,000 - 700 = 300 units.

FIGURE 5-4 -Refer to Figure 5-4.Suppose the Government Imposes a Rent-Controlled Price