Question :
81) Suppose the government imposes a price ceiling rental housing : 1384176
81) Suppose the government imposes a price ceiling on rental housing that is below the market-clearing price. The resulting shortage will be
A) greater the more recently the controlled price went into effect.
B) smaller the longer the controlled price has been in effect.
C) greater the more elastic the demand for rental housing.
D) smaller the more elastic the demand for rental housing.
E) diminished over time.
82) Assuming that the long-run supply of housing is more ________ than the short-run supply, the imposition of binding rent controls will generally ________.
A) inelastic; lead to a reduction in the housing shortage over time
B) elastic; lead to a worsening of the housing shortage over time
C) inelastic; lead to no significant change in the housing shortage
D) elastic; lead to only a temporary housing shortage
E) elastic; lead the price of rental housing to revert back to its equilibrium level
83) Who are likely to be the biggest beneficiaries of rent controls?
A) landlords
B) prospective tenants
C) current tenants
D) construction companies
E) no group will benefit from the controls
84) Refer to Figure 5-4. Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the short run we can expect the shortage of apartments to be ________ units.
A) 0
B) 200
C) 300
D) 800
E) 1000
85) Refer to Figure 5-4. Suppose the government imposes a rent-controlled price of $600 per month on apartments in this city. In the long run we can expect the shortage of apartments to be ________ units.
A) 0
B) 200
C) 300
D) 800
E) 1000
86) Refer to Figure 5-4. Suppose the government sets a rent ceiling at Price B, $900. In this situation, the rental price for an apartment is
A) $600.
B) $900.
C) any rent above $900.
D) the same as the free-market equilibrium rental price.
E) any rent below $600.
87) Refer to Figure 5-4. The difference between supply curve S1 and supply curve S2 in this market for apartments is that
A) S1 is not affected by a government controlled rental price.
B) S2 is not affected by a government controlled rental price.
C) S1 is more elastic than S2.
D) S1 is a short-run supply curve and S2 is a long-run supply curve.
E) S1 is a long-run supply curve and S2 is a short-run supply curve.
88) The short-run supply for rental housing is quite ________ while the long-run supply for housing is quite ________.
A) elastic; inelastic
B) inelastic; elastic
C) flat; steep
D) inelastic; inelastic
E) elastic; elastic
89) The long-run elasticity of supply of rental housing is greater than the short-run elasticity of supply because
A) changes in supply can occur very quickly, especially when rent controls are in place.
B) investment in new rental housing has such a short payback period.
C) changes in supply occur only after investment decisions are made regarding, for example, new construction or conversion of rental housing to other uses.
D) in the long run, landlords have no incentive to alter the supply of rental housing.
E) the demand for rental housing is changing continuously.
90) Consider the demand curve for a product such as movie tickets, which shows how many tickets consumers wish to purchase at each possible price. Alternatively, we could view this demand curve in the following way:
A) for each quantity of movie tickets, the price on the demand curve shows the value that consumers place on that particular movie ticket.
B) for each quantity of movie tickets, the demand curve shows the economic surplus generated by the purchase of the tickets.
C) for each possible price, the demand curve shows the economic surplus generated by the purchase of the tickets.
D) for each quantity of movie tickets, the demand curve shows the extent of market inefficiency and deadweight loss.
E) for each quantity of movie tickets, the demand curve shows the additional cost to the producer of supplying that particular movie ticket.
