his Question 2 pts This Test 30 pts The table shows the dema

his Question 2 pts This Test 30 pts The table shows the demand and supply schedules for on-campus housing. If the college puts a strictly enforced rent ceiling on rooms ofssoo amonth, rent iss and the number of rooms rented is If the college strictly enforces the rent ceiling of S500 a month, the on-campus housing market is OA- efficient; with the rent ceiling fewer rooms are rented OB, efficient; the rent ceiling does not change the number ofrooms rented Oc. inefficient; with the rent ceiling more rooms are rented OD, efficient; with the rent ceiling more rooms are rented OE. inefficient; the rent ceiling has no effect on the number ofrooms rented Time Remaining 01:09:34 0 of 15 Quantity Quantity Rent demanded ed su month (room) 4,000 5.000 4,500 4,000 4,000 4,000 4,000 3,500 3,000 4.000 750 2500 4,000

Solution

a. if the college enforces $500 as rent so the rent cannot exceed $500 it has to b

e $500 or below that because price ceiling is being imposed.the numbers of rented will be 4000 only .

b. efficient , with the rent ceiling fewer rooms are rented.here because at 500$ rent quantity demanded is more and quantuty supplied is less. so because price celiling is being enforced reduces the quantity supplied.