Use the following to answer question(s): Rent Controls

-(Exhibit: Rent Controls) If rent controls are set at Rent₀:
A) the shortage of rental units is Q₂ to Q₀.
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 shortage of rental units, but it is impossible to tell how large the shortage is based on the information provided.

Question

Use the following to answer question(s): Rent Controls
 
-(Exhibit: Rent Controls) If rent controls are set at Rent₀:
A) the shortage of rental units is Q₂ to Q₀. 
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 shortage of rental units, but it is impossible to tell how large the shortage is based on the information provided.

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.

Use the Following to Answer Question(s): Rent Controls