Question : 11) The figure above illustrates the bagel market. Which of : 1239143

11) The figure above illustrates the bagel market. Which of the following statements is correct?

A) With a price ceiling of $1.00 per bagel, the price of a bagel is $1.

B) With a price ceiling of $3.00 per bagel, the price of a bagel is $2.

C) With no government intervention, the equilibrium price of a bagel is $2.

D)  Only answers A and B are correct.

E) Answers A, B, and C are correct.

12) In a housing market with no rent ceilings, the equilibrium rent is that for which the quantity of apartments demanded

A) equals the quantity supplied.

B) is greater than the quantity supplied.

C) is less than the quantity supplied.

D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or vertical.

E) None of the above answers is correct because without rent ceilings there is no equilibrium rent.

13) A rent ceiling set below the equilibrium rent

A) ensures the availability of enough low-rent apartments in a city.

B) results in all renters and potential renters being better off.

C) creates a situation in which the quantity demanded of housing is greater than quantity supplied.

D) ensures that landlords earn a reasonable rate of profit on apartments.

E) eliminates discrimination by landlords.

14) A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because

A) landlords of previously barely profitable apartments refuse to rent them.

B) the supply of housing increases.

C) fewer tenants will search for housing.

D) demand for housing will increase.

E) the supply curve of housing immediately shifts leftward.

15) A housing shortage results when

A) a tax is imposed on housing.

B) a rent ceiling below the equilibrium rent is imposed.

C) a rent ceiling above the equilibrium rent is imposed.

D) rents rise.

E) a rent floor below the equilibrium rent is imposed.

16) Suppose the equilibrium rent in Denver is $1,050. A rent ceiling of $755 per month leads to

A) a surplus of apartments in Denver.

B) a shortage of apartments in Denver.

C) no change in the Denver apartment market.

D) fair prices in the Denver market.

E) compared to the situation at the equilibrium rent, a decrease in the quantity of apartments demanded and an increase in the quantity of apartments supplied.

17) Suppose the equilibrium rent in Boston is $1,500. A rent ceiling of $1,600 per month leads to

A) a surplus of apartments in Boston.

B) a shortage of apartments in Boston.

C) no change in the Boston apartment market.

D) fair prices in the Boston apartment market.

E) compared to the situation at the equilibrium rent, a decrease in the quantity of apartments demanded and an increase in the quantity of apartments supplied.

18) With a rent ceiling set below the equilibrium rent,

i.all renters are able to rent apartments at a lower rent.

ii.there is a shortage of apartments.

iii.the quantity of apartments supplied does not change because buildings cannot be moved.

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

19) Which of the following is an impact of a rent ceiling set below the equilibrium rent?

A) Renters find apartments to rent more rapidly because the rent ceiling is lower.

B) Landlords’ incentives to provide apartments decrease.

C) The supply of apartments increases as soon as the rent ceiling is imposed.

D) A surplus of housing occurs.

E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.

20) If a rent ceiling is below the equilibrium rent, some allocation scheme must be used. The allocation methods include all of the following EXCEPT

A) charging the equilibrium rent.

B) refusing to rent to individuals on the basis of sex, race, or some other attribute.

C) requiring a payment, such as key money, in addition to the rent.

D) the creation of a black market.

E) increased search activity.