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 ________ units of housing are available,and black market rents might be as high as ________ a month.
A) 3,000; $625
B) 6,000; $400
C) 3,000; $550
D) 4,000; $550
E) 4,000; $625

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 ________ units of housing are available,and black market rents might be as high as ________ a month.
A) 3,000; $625 
B) 6,000; $400 
C) 3,000; $550 
D) 4,000; $550 
E) 4,000; $625

Quizplus · Accepted Answer

A rent ceiling creates a shortage, reducing the available units to 3,000, and black market rents can rise to $625 due to increased demand and limited supply.

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