In the figure, originally the apartment rental market is in short-run and long-run equilibrium with a...

 

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In the figure, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. If the law is strictly enforced, the maximum for which an apartment will rent on the black market is A. more than $700 per month. B. less than $600 per month. C. $600 per month. D. $700 per month. Rent (dollars per month) 800 700 600 500 400 0 S 1 4 5 6 2 3 Quantity thousands of apartments per month) In the figure, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. If the law is strictly enforced, the maximum for which an apartment will rent on the black market is A. more than $700 per month. B. less than $600 per month. C. $600 per month. D. $700 per month. Rent (dollars per month) 800 700 600 500 400 0 S 1 4 5 6 2 3 Quantity thousands of apartments per month)

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Answer option D The rent ceiling will decrea... View the full answer