1. Suppose the government passes a rent control law. a) what would happen to the quantity demanded and the quantity supplied of the apartments? b) would a shortage or surplus result? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully. Please support answers with a graph and explain.
1. Suppose the government passes a rent control law. a) what would happen to the quantity demanded and the quantity supplied of the apartments? b) would a shortage or surplus result? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully. Please support answers with a graph and explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Suppose the government passes a rent control law.
a) what would happen to the quantity demanded and the quantity supplied of the apartments? b) would a shortage or surplus result? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully. Please support answers with a graph and explain.
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