Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?

A) There is a shortage of 150 apartments.
B) There is an excess demand for apartments.
C) The market clearing rental price of apartments is too low.
D) The market clearing rental price of apartments is less than $1000 per month.

D

Economics

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Under monopsony, the marginal factor cost of a worker is equal to

A) the additional worker's wage rate only. B) the additional worker's wage rate plus the increase in the wages of all other existing workers. C) the increase in the wages of all other existing workers. D) the difference between the worker's wage rate and the lower wage rate received by workers who have already been hired.

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