6.3 Controlling Prices-Maximum and Minimum Prices

6.3 Controlling Prices-Maximum and Minimum Prices

Figure 6.6
-Refer to Figure 6.6.If the government will not allow landlords to charge more than $400 for an apartment,which of the following will happen?

A) Demand must eventually decrease so that the market will come into equilibrium at a price of $400.
B) Supply must eventually increase so that the market will come into equilibrium at a price of $400.
C) There will be an excess demand for apartments.
D) The market will be in equilibrium at a price of $400.

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