Ask Question
BusinessBusiness
10 March, 09:08

When rent control pushes the price of apartments below the market equilibrium, then everyone who would like a rent-controlled apartment will be able to find one. a shortage of the apartments will develop. a surplus of apartments will emerge. the scarcity of apartments will be eliminated?

+1
Answers (2)
  1. 10 March, 12:16
    0
    It will lead to an excess demand and a shortage in supply.

    Explanation:

    Market equilibrium price is the price at quantity demand of a good is equal to the demanded.

    From the question, market equilibrium price or rent is the rent at which the number of demand for rented apartments by people who want them is equal to the number of the rented apartments made available by the apartment owners.

    When rent control pushes the price of apartments below the market equilibrium, it will lead to an increase in the demand for rented apartment but it will lead to a fall in the supply of rented apartment. This will lead to an excess demand and a shortage in supply.

    Consequently, everyone who would like a rent-controlled apartment will be able to find one will not be able to get one, a shortage of the apartments will arise, there will not be a surplus of apartments but shortage, and this will increase the scarcity of apartments.
  2. 10 March, 12:26
    0
    a shortage of the apartments will develop.

    Explanation:

    Demand exceeds supply when prices fall below the equalibrium a shortage of the apartments will develop.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When rent control pushes the price of apartments below the market equilibrium, then everyone who would like a rent-controlled apartment ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Assume the price elasticity of demand for great fit shoe co. shoes is 2.5. if the company decreases the price of each pair of shoes, total revenue will
Answers (1)
Assume the total cost of a college education will be $380,000 when your child enters college in 16 years. you presently have $62,000 to invest.
Answers (1)
There were 14,058 million shares of this preferred stock outstanding throughout the year. determine the total dividends that bank of america paid during fiscal 2015. round answer to the nearest million.
Answers (1)
What term describes the worldwide sector that facilitates research and development, as well as design of new military systems and equipment?
Answers (1)
You have responded to an employee fall in the manufacturing plant where you work. your assessment makes you suspect the responsive employee may have injured his back. he has fallen into an aisle way that sometimes has forklift traffic.
Answers (1)
New Questions in Business
When the consumer price index rises, the typical family a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d.
Answers (1)
A magazine subscription costs $45 per year at the beginning of each year, or $115 now for a three-year subscription. If the subscriber elects to pay the $115 now, the rate of return on the investment will be nearest to:
Answers (2)
The second step in rational decision making is to: choose the solution that maximizes value. identify the criteria that are important in making the decision. evaluate the alternatives. implement the alternative.
Answers (1)
What impact will a spike in wages cause to the labor demand curve?
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
Home » Business » When rent control pushes the price of apartments below the market equilibrium, then everyone who would like a rent-controlled apartment will be able to find one. a shortage of the apartments will develop. a surplus of apartments will emerge.
Sign Up Forgot Password?