Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.If the demand for rental housing increases and the demand curve shifts rightward from D₀ to D₁,and there is a strictly enforced rent ceiling of $150 per room, A)the number of rooms rented will increase to 2,000. B)the number of rooms rented is 1,500. C)there is a housing surplus of 500 rooms. D)the number of rooms rented decreases to 1,000. E)the rent is $175 per room.

Question

Quizplus · Accepted Answer

With a strictly enforced rent ceiling of $150 per room, the quantity of rooms rented cannot exceed the quantity supplied at that price level. Since the demand curve shifts rightward, it indicates an increase in demand, but the rent ceiling prevents the price from adjusting to clear the market. Therefore, the number of rooms rented remains at the level determined by the supply at the rent ceiling, not increasing due to the price cap.

Use the Figure Below to Answer the Following Questions