Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent. With this plan
A) the quantity of apartments demanded will increase.
B) the quantity of apartments supplied will increase.
C) young people and poor people will have an easier time finding apartments.
D) the deadweight loss in Chicago's apartment market will be eliminated.
E) there will be a surplus of apartments offered for rent.
A
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Suppose that marginal revenue for a perfectly competitive firm is $20 . When the firm produces 10 units, its marginal cost is $20, its average total cost is $22, and its average variable cost is $17
Then to maximize its profit in the short run, the firm A) should stay open and incur an economic loss of $20. B) must increase its output to increase its profit. C) must decrease its output to increase its profit. D) should shut down. E) should not change its production because it is already maximizing its profit and is making an economic profit.
An explicit cost is defined as
A) a nonmonetary accounting cost. B) a cost that involves spending money. C) a nonmonetary opportunity cost. D) a cost that does not change as output changes.