Rent (dollars per month)
800
700
600
500
400
0
1
2
3
4
5
6
Quantity (thousands of apartments per month)
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of
$500 per month. The rent ceiling leads to a
Select one:
A. surplus of 1,000 apartments.
B. shortage of 2,000 apartments.
C. shortage of 1,000 apartments.
D. surplus of 2,000 apartments.
Clear my choice