Interpret the following statement: "Demand exceeds the available quantity of apartment housing.If the price of apartment rentals were increased, demand would decrease and an equilibrium could be achieved."
A) The statement is correct.
B) The statement is incorrect because the price should be decreased, not increased, in order to achieve equilibrium.
C) The statement would be correct if it read "supply would decrease" in response to a price increase.
D) The statement is incorrect because it confuses "demand" with "quantity demanded."
E) The statement would be correct only if the terms "demand" and "supply" were interchanged.
Correct Answer:
Verified
Q83: Which of the following could be responsible
Q103: If we observe both an increase in
Q113: If American consumers decided to boycott grapes
Q114: American consumers decide to boycott soccer balls
Q147: A surplus exists in the market for
Q150: A surplus currently exists in the market
Q151: A shortage exists in the market for
Q153: "In a surplus scenario, as prices fall,
Q155: Ceteris paribus, the fear among travelers created
Q219: When there is an excess quantity demanded
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents