Suppose that a binding rent control law is repealed in San Francisco. As a result, we would expect the total number of units rented in the city to
a. increase

As prices of an input changes, the isocost line will ________ to reflect more or less of the total amount spent in production

Fill in the blank(s) with the appropriate word(s).

A debt contract is incentive compatible

A) if the borrower has the incentive to behave in the way that the lender expects and desires, since doing otherwise jeopardizes the borrower's net worth in the business. B) if the borrower's net worth is sufficiently low so that the lender's risk of moral hazard is significantly reduced. C) if the debt contract is treated like an equity. D) if the lender has the incentive to behave in the way that the borrower expects and desires.