suppose the government of greenville, after receiving numerous complaints from residents about rising…

suppose the government of greenville, after receiving numerous complaints from residents about rising housing costs, imposed a rent control regulation which limits the rent to $2000 for a 1 - bedroom apartment. this limit is below the market rate of $2500 for such apartments. 1. this regulation is a type of select 2....and is likely to create a select tax price floor price ceiling 3....which over a longer perio select 4....because the supply and demand for the apartments are select in the long run.

suppose the government of greenville, after receiving numerous complaints from residents about rising housing costs, imposed a rent control regulation which limits the rent to $2000 for a 1 - bedroom apartment. this limit is below the market rate of $2500 for such apartments. 1. this regulation is a type of select 2....and is likely to create a select tax price floor price ceiling 3....which over a longer perio select 4....because the supply and demand for the apartments are select in the long run.

Answer

Brief Explanations:

  1. A rent - control regulation that limits rent below the market rate is a price ceiling as it sets a maximum price.
  2. Price ceilings below the equilibrium price usually create shortages as quantity demanded exceeds quantity supplied.
  3. In the long - run, supply and demand for apartments are more elastic. When there is a price ceiling, the shortage becomes more pronounced because suppliers can adjust their supply more and demand can also adjust more in response to the price limit.

Answer:

  1. price ceiling
  2. shortage
  3. more elastic