(Figure: Rent Controls) Look at the figure Rent Controls.If rent controls are set at Rent0:
A)the shortage of rental units is the distance Q₁ - Q₃.
B)some renters would be willing to pay a price as high as Rent4 for Q0 units.
C)no one would have to pay a higher actual price than Rent0, nor would anyone be willing to do so.
D)there would be a surplus of rental units.

Question

Quizplus · Accepted Answer

If rent controls are set at Rent0, some renters would be willing to pay a higher price, such as Rent4, for the limited quantity Q0, indicating a willingness to pay above the controlled price.

(Figure: Rent Controls) Look at the Figure Rent Controls