Question

The enactment of rent control will likely lead to all but which of the following? disequilibrium...

The enactment of rent control will likely lead to all but which of the following?
disequilibrium in the marketplace
shortage
inefficient allocation of resource
black markets
an increase in total economic surplus
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Equilibrium in the market occurs at point C. At price ceiling, there is disequilibrium in the market because demand > supply.

Price ceiling will result in shortage of goods.

Price ceiling cause inefficient allocation of resources due to deadweight loss of area of triangle CDE.

Price ceiling raise black market price to F due to shortage of goods.

Price ceiling does not increase total economic surplus because of deadweight loss. Thus, option E is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
18. Rent control laws may lead to which of the following unintended effects? a. Under-the- table...
18. Rent control laws may lead to which of the following unintended effects? a. Under-the- table payments b. Increased forced commuting c. Higher search costs d. All of the above                                                                                                                  -------------- Without public education, which of following is true about the quality of education delivered in a market? a.It cannot be determined b.It will be low c.The market will provide the mechanism for assuring it d.There will be no oversight of quality 20.Compared to a competitive market, a monopolist...
A horizontal merger can lead to all of the following EXCEPT which one? -a decrease in...
A horizontal merger can lead to all of the following EXCEPT which one? -a decrease in the total surplus -a perfectly competitive market -a dead weight loss -a monopoly
Twenty One Pilots records an album. When determining all the costs to produce the album, they...
Twenty One Pilots records an album. When determining all the costs to produce the album, they are likely to forget to calculate opportunity costs. Which is an example of an opportunity cost? The cost of paying for studio time The cost of hiring a producer The cost of marketing the album The acting role they had to pass up to write lyrics All of the above Which of the following is an example of a price floor? A quota on...
Which of the following is NOT likely to lead to economic growth? Group of answer choices...
Which of the following is NOT likely to lead to economic growth? Group of answer choices More immigrant workers are added to a nation. Existing workers in a country are trained to operate a widely used accounting software. More stay-at-home parents join the labor force. A new government initiates much-needed reform of the national banking system.
Which of the following diets is likely to lead to an increase in ketone body utilization...
Which of the following diets is likely to lead to an increase in ketone body utilization by the brain? A diet contains equal amounts of fat and proteins A diet mostly contains carbohydrates A diet mostly contains fat A diet contains a balanced amount of fat, protein, and carbohydrate
(1) Other things being equal, which of the following will most likely occur in the United...
(1) Other things being equal, which of the following will most likely occur in the United States as the result of an unexpected economic slowdown in Canada and Mexico? Group of answer choices an increase in aggregate demand and output in the short run an reduction in aggregate demand and output in the short run an increase in the price level a decrease in the natural rate of unemployment in the United States (2) A leftward shift in the demand...
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price...
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. Nonprice methods of rationing emerge. The future supply of rental housing units increases. The quantity of available...
* Which of the following would lead to lower interest rates? Select one: a. all of...
* Which of the following would lead to lower interest rates? Select one: a. all of the above b. households receive news that makes them believe that their incomes will rise in the future c. a technological innovation that results in a large increase in capital purchases by business d. the value of households wealth increases due to an unexpecte increase in the value of their stock holdings * Which of the following would lead to less household saving? Select...
34. A government-imposed ceiling on apartment rents, if set above the equilibrium rent level, would A.  ...
34. A government-imposed ceiling on apartment rents, if set above the equilibrium rent level, would A.   have no effect on the housing market. B.    lead to a persistent shortage of apartments. C.    lead to a persistent surplus of apartments. D.   shift the supply curve for apartments to the right. 41. We have a flexible exchange rate system, in equilibrium and with the balance of trade in balance. Now, U.S. exports become less attractive to foreign purchasers. The U.S. can expect...
Which one of the following is least likely to be an objective of NFP reporting? A....
Which one of the following is least likely to be an objective of NFP reporting? A. Information should be useful in assessing whether the organization is in compliance with relevant laws. B. Information should useful in evaluating services provided. C. Information should be useful in assessing management performance. D. Information should be useful for making resource allocation decisions.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT