Following a major natural disaster that destroys housing, a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________
A) would not; discourage rebuilding and result in a shortage
B) would not; cause the quantity supplied to exceed the quantity demanded
C) would; cause increased search activity
D) would; create a black market that would result in a lower rent
E) would; encourage a greater quantity supplied
A
You might also like to view...
The market for lawn services is perfectly competitive. Larry's Lawn Service cannot increase its total revenue by raising its price because ________
A) Larry's supply of lawn services is perfectly inelastic B) the demand for Larry's services is perfectly inelastic C) Larry's supply of lawn services is inelastic D) the demand for Larry's services is perfectly elastic
Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3 . They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
a. $1. b. $2. c. $2.50. d. $3.