Question 8
1 pts
If a rent ceiling is set at $1,100 in the
graph below:
Rent
(per period)
S
1200
1100
1000
900
800
D
1.8 1.9 2.0 2.1 2.2
Quantity of rental units (per period)
some renters will be willing to pay a price as
high as $1,200 for available rental units.
no one will have to pay a higher actual price
than $800, nor will anyone be willing to do
so.
rent will remain at $1,000.
the shortage of rental units will be the
distance 2.1 million - 1.9 million or 0.2
million units.