Suppose the government imposes rent control (a price ceiling) below the equilibrium price for rental housing. Which of the following could result?
a. Tenants risk breaking rent control law.
b. The quality of existing rental housing deteriorates.
c. Shortages.
d. All of these.
d
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Use the following statements to answer this question: I. The equal marginal principle may be used to characterize the maximum utility consumption decision even if the diminishing MRS assumption does not hold. II
The equal marginal principle implies that the MRS at the optimal consumption bundle is always equal to the price ratio. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.
In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000
a. True b. False Indicate whether the statement is true or false