Asked by Nyasia Green on Jun 27, 2024
Verified
(Table: Market for Apartments) Use Table: Market for Apartments.If a government price ceiling of $600 is imposed on this market,the result will be an inefficiency in the form of a _____ million apartments.
A) surplus of 0.6
B) surplus of 0.8
C) shortage of 0.8
D) shortage of 0.6
Government Price Ceiling
A legally imposed maximum price on goods or services to prevent prices from rising too high, often leading to shortages.
Market
A place or mechanism where buyers and sellers come together to trade goods, services, or financial instruments.
Inefficiency
A lack of productivity or effectiveness in the use of resources, often leading to waste.
- Understand the relationship between price regulations and the emergence of market anomalies like excess supply and scarcity.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
A government-imposed price ceiling of $600 would result in a shortage because the quantity demanded would exceed the quantity supplied at that price level, leading to a shortage of 0.8 million apartments.
Learning Objectives
- Understand the relationship between price regulations and the emergence of market anomalies like excess supply and scarcity.