If there is a shortage in a rental market, what is expected?
A) Rental prices to be decreasing until shortage is eliminated.
B) Rental prices to be increasing until shortage is eliminated.
C) Rental prices to either be increasing or decreasing.
D) Rental prices to stay the same.

Question

Quizplus · Accepted Answer

In a rental market, a shortage occurs when demand exceeds supply at the current price level. To eliminate the shortage, rental prices are expected to increase. This adjustment encourages an increase in supply and/or a decrease in demand until the market reaches a new equilibrium.

If There Is a Shortage in a Rental Market, What