In the market for apartments, rent control causes the quantity supplied

A) and quantity demanded to fall.
B) to fall and quantity demanded to rise.
C) to rise and quantity demanded to fall.
D) and quantity demanded to rise.

Question

Lauren Smalley · Accepted Answer

Final Answer : B, Explanation :  Rent control sets a maximum price for apartments, which typically leads to a decrease in the quantity supplied (as landlords find it less profitable to rent out or maintain apartments) and an increase in the quantity demanded (as more people can afford to rent at the lower price), leading to a shortage.

In the market for apartments, rent control causes the quantity supplied

A) and quantity demanded to fall.
B) to fall and quantity demanded to rise.
C) to rise and quantity demanded to fall.
D) and quantity demanded to rise.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the market for apartments, rent control causes the quantity suppliedA) and quantity demanded to fall.B) to fall and quantity demanded to rise.C) to rise and quantity demanded to fall.D) and quantity demanded to rise.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the market for apartments, rent control causes the quantity supplied

A) and quantity demanded to fall.
B) to fall and quantity demanded to rise.
C) to rise and quantity demanded to fall.
D) and quantity demanded to rise.