Refer to the accompanying table to answer the following questions.

-If rent control is established at $1,550,what would be the amount of disequilibrium in the apartment market?
A) There would be a shortage of 28,990 apartments.
B) There would be a surplus of 28,990 apartments that is reduced,over time,as individuals rent apartments in the illegal black market.
C) There would be neither a shortage nor a surplus.
D) There would be a surplus of 28,990 apartments that is eliminated through individuals renting apartments in the illegal black market.
E) There would be a surplus of 28,990 apartments that increases as houses and condominiums are converted into apartments.

Question

Refer to the accompanying table to answer the following questions.
 
-If rent control is established at $1,550,what would be the amount of disequilibrium in the apartment market?
A) There would be a shortage of 28,990 apartments. 
B) There would be a surplus of 28,990 apartments that is reduced,over time,as individuals rent apartments in the illegal black market. 
C) There would be neither a shortage nor a surplus. 
D) There would be a surplus of 28,990 apartments that is eliminated through individuals renting apartments in the illegal black market. 
E) There would be a surplus of 28,990 apartments that increases as houses and condominiums are converted into apartments.

Quizplus · Accepted Answer

Rent control set below the market equilibrium price typically leads to a shortage of apartments because the quantity demanded exceeds the quantity supplied at the controlled price.

Refer to the Accompanying Table to Answer the Following Questions