Suppose the demand for rental apartments decreased substantially. We would expect to observe
A) no change in rent and a sharp reduction in quantity supplied in the short run, and an even larger decrease in quantity supplied in the long run.
B) a large decrease in quantity supplied in the short run, followed by a counter-reaction and an increase in quantity supplied in the long run.
C) a small decrease in quantity supplied and significantly lower rents in the short run, and quantity supplied to decrease much more in the long run.
D) a large decrease in quantity supplied in the short run and the long run, but much larger reductions in rent in the long run.
C
You might also like to view...
Controversy over the ECB includes all of the following, EXCEPT:
A) its poor performance in controlling euro inflation. B) its lack of accountability for its actions. C) its remoteness from democratic control. D) the perception that the central bank does not focus on problems related to European economic performance.
A return to the gold standard, that is, using gold for money will ________ the ________ for gold, ________ its price, everything else held constant
A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing