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6.3 Controlling Prices-Maximum and Minimum Prices

Question 88

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6.3 Controlling Prices-Maximum and Minimum Prices
6.3 Controlling Prices-Maximum and Minimum Prices Figure 6.6 -Refer to Figure 6.6.Suppose that landlords could not charge the market equilibrium price of $500,but instead could charge no more than $400.As a result,the quantity of apartments rented will fall from 100 to 50.In this case consumer surplus will A) decrease. B) increase. C) stay the same. D) It is impossible to say.
Figure 6.6
-Refer to Figure 6.6.Suppose that landlords could not charge the market equilibrium price of $500,but instead could charge no more than $400.As a result,the quantity of apartments rented will fall from 100 to 50.In this case consumer surplus will


A) decrease.
B) increase.
C) stay the same.
D) It is impossible to say.

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