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 it is greater than $200

Question

Quizplus · Accepted Answer

The highest rent that would be charged in a black market is the point where the quantity demanded (Qd) equals the quantity supplied (Qs) at the price ceiling of $150. From the graph, we can see that at a price of $150, the quantity demanded is Qd2 and the quantity supplied is Qs1, resulting in a shortage of housing. In a black market, suppliers can charge a higher price due to the shortage. The highest price that would be charged in a black market is the point where the demand curve intersects the quantity supplied at Qs1. This occurs at a price of approximately $200, as shown by point B0 on the graph. Therefore, the answer is C.

Use the Figure Below to Answer the Following Questions