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Figure: Supply and Demand 5
-(Figure: Supply and Demand 5) Refer to the figure. In the figure, representing a market for apartments, a rent-controlled price of $800 will cause:
A) a short-run shortage of 6,000 apartments.
B) a short-run shortage of 8,000 apartments.
C) a short-run shortage of 3,000 apartments.
D) a short-run surplus of 14,000 apartments.

Question

Use the following to answer questions:
Figure: Supply and Demand 5 
-(Figure: Supply and Demand 5) Refer to the figure. In the figure, representing a market for apartments, a rent-controlled price of $800 will cause:
A) a short-run shortage of 6,000 apartments. 
B) a short-run shortage of 8,000 apartments. 
C) a short-run shortage of 3,000 apartments. 
D) a short-run surplus of 14,000 apartments.

Quizplus · Accepted Answer

At a rent-controlled price of $800, the quantity demanded is 9,000 apartments and the quantity supplied is 6,000 apartments. Therefore, there is a shortage of 3,000 apartments in the short run.

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