The equilibrium apartment rental rate is $1000 per month. If a price ceiling is set at $800, we expect the outcome to be ______. If a price ceiling is set at $1200, we expect the outcome to be _____. A) Equilibrium; equilibrium B) A shortage; a surplus C) Equilibrium; a shortage D) A shortage; equilibrium
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This is because at the lower price, the quantity demanded will exceed the quantity supplied, leading to a shortage in rental units. Show more…
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