Use the figure below to answer the following questions.

Figure 6.1.1
-Refer to Figure 6.1.1. Suppose the demand for rental housing is shown by demand curve D₁, and there is a rent ceiling of $150 per room. What is the highest rent that would be charged in a black market?
A)$150 a month
B)$175 a month
C)$200 a month
D)$100 a month
E)cannot be determined from the graph, but we know it is greater than $200

Question

Use the figure below to answer the following questions.
  
Figure 6.1.1
-Refer to Figure 6.1.1. Suppose the demand for rental housing is shown by demand curve D₁, and there is a rent ceiling of $150 per room. What is the highest rent that would be charged in a black market?
A)$150 a month 
B)$175 a month 
C)$200 a month 
D)$100 a month 
E)cannot be determined from the graph, but we know it is greater than $200

Quizplus · Accepted Answer

The highest rent in a black market would be where the quantity demanded equals the quantity supplied without the rent ceiling, which is at the equilibrium price of $200.

Use the Figure Below to Answer the Following Questions