posted by Angela on Sunday, May 21, 2017 at 12:33am.
In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ .
A. excess supply
B. equilibrium
C. higher price
D. deadweight loss
Ans- D
2 answers
I agree.
yep thats right
3 answers