Multiple Choice
FIGURE 5- 1
-Refer to Figure 5- 1. If the diagram applies to the market for rental housing and P3 represents the maximum rent that can be charged, then
A) units supplied will be reduced relative to the competitive equilibrium by AF rental units.
B) there will be an excess supply of rental units equal to BD.
C) there will be excess demand for rental units equal to FC.
D) there will be excess demand for rental units equal to AF.
E) windfall profits will be earned by landlords.
Correct Answer:
Verified
Correct Answer:
Verified
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