QUESTION 12 Rent dollars per month 1500 1400 1300 200 1100 R

QUESTION 12 Rent (dollars per month) 1,500 1,400 1,300 200 1.100 Rent ceiling 900 0100150 200 250 300 350 400 Quantity (thousands of units) The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month then there i D) shortage equal to 250,000 town homes shortage equal to 150,000 town homes surplus equal to 150,000 town homes. surplus equal to 100,000 town homes. QUESTION 13 A price floor is usualy equal to the equilibrium price established before the government imposed the price floor the highest possible legal price that can be charged for a good or service. a legal price of zero that can be charged for a good or service. the lowest legal price at which a good or service can be traded. Ciek Save and Submit to save and submit, Cick Save All Answers to save all a

Solution

Ans:

12) shortage equal to 150,000 town homes.

when rent ceiling is set at $1,000 per month, supply is 100,000 town homes and demand is 250,000 town homes.

shortage = 250,000 town homes - 100,000 town homes.

= 150,000 town homes

13) the lowest legal price at which a good or service can be traded.

A price floor is the lowest legal price at which a good or service can be sold at.