The diagram shows the market for apartments in a city. Assume that all apartments are identical. Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the long run we can expect the shortage of apartments to be units. OA. 1100 OB. 800 OC. 300 O D. 500 O E. 0 Price (dollars per month) 1,400 1,300- 1,200- 1,100- 1,000- 900- 800+ 700+ 600- 500- 400- 300+ 0 200 S₁ Price B2 Price A Demand 400 600 800 1,000 1,200 1,400 Quantity of apartments Q G
The diagram shows the market for apartments in a city. Assume that all apartments are identical. Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the long run we can expect the shortage of apartments to be units. OA. 1100 OB. 800 OC. 300 O D. 500 O E. 0 Price (dollars per month) 1,400 1,300- 1,200- 1,100- 1,000- 900- 800+ 700+ 600- 500- 400- 300+ 0 200 S₁ Price B2 Price A Demand 400 600 800 1,000 1,200 1,400 Quantity of apartments Q G
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The diagram shows the market for apartments in a city. Assume that all apartments are identical.
Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the long run
we can expect the shortage of apartments to be
units.
O A. 1100
B. 800
O C. 300
D. 500
O E.
0
1
Price (dollars per month)
1,400
1,300-
1,200-
1,100-
1,000-
0
900-
800+
700-
600-
500-
400-
300+
0
S₁
Price B 2
$₂
Price A
Demand
200 400 600 800 1,000 1,200 1,400
Quantity of apartments
Q
Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96ed4f2e-a0e5-40d5-9d9a-4e9c33f2cc14%2F7daa9e3c-b987-40fa-8d11-7556cefe437b%2Fcjrr1lw_processed.png&w=3840&q=75)
Transcribed Image Text:The diagram shows the market for apartments in a city. Assume that all apartments are identical.
Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the long run
we can expect the shortage of apartments to be
units.
O A. 1100
B. 800
O C. 300
D. 500
O E.
0
1
Price (dollars per month)
1,400
1,300-
1,200-
1,100-
1,000-
0
900-
800+
700-
600-
500-
400-
300+
0
S₁
Price B 2
$₂
Price A
Demand
200 400 600 800 1,000 1,200 1,400
Quantity of apartments
Q
Q
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