The rationale for rent control is that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support them primarily on the grounds of

Compared to a monopolistic competitor, a monopoly producer who was currently earning economic profits: a. would face a more elastic demand curve

b. would face a less elastic demand curve. c. could continue to earn economic profits for a longer period of time. d. would be characterized by both (b) and (c).

Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?

A. Immigrants have less leverage in negotiating wage increases. B. Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. C. The minimum wage does not apply to immigrants until they have resided in the United States for three years. D. Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate. E. Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills.