Answered: What is correct about rent controls?…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 15PAE

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What is correct about rent controls? Question 4 options: They cause excess supply (or surplus) at the controlled price, which is lower than equilibrium price. They cause excess demand (or shortage) at the controlled price, which is lower than equilibrium price. They can guarantee everyone will have an affordable apartment They encourage apartment owners to invest in maintenance of the apartment The consumer's income goes up. The good in question is a normal good. What can we expect? (hint - I discuss this in the video lecture) Question 7 options: The demand curve moves to the left. The price of the good decreases. The demand curve moves to the left. The price of the good increases. The demand curve moves to the right. The price of the good decreases. The demand curve moves to the right. The price of the good increases. What is an inferior good? Hint - use the economic definition, not a general dictionary definition! Question 10 options: A good for which demand does not change as income goes up A good for which demand decreases as income goes up A good for which demand increases as income goes up A good for which supply increases as income goes up

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