The elasticity of supply of rental units in New York City is estimated to be about 0.10. Current price restrictions (price floors) are estimated to decrease the price of rental units by 10% below equilibrium price
By how much would price and quantity supplied change if the price floors were removed from the rental unit market in New York City? A) Price will increase by 10% and quantity supplied will increase by 1%.
B) Price will decrease by 10% and quantity supplied will increase by 1%.
C) Price will increase by 10% and quantity supplied will decrease by 1%.
D) Price and quantity supplied will increase by 10%.
A
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In comparison to a government that runs a balanced budget, when the government runs a budget deficit,
A) business investment will fall. B) the equilibrium interest rate will fall. C) household savings will fall. D) none of the above
You are putting together a portfolio of assets. The four most important characteristics of the assets you will choose are expected return, time to maturity,
A) risk, and liquidity. B) risk, and collateral C) risk, and reward. D) liquidity, and standard issue size.