A rent control law is passed in the city of Portland. If the equilibrium rent for a one bedroom apartment is $1,500 per month then

A rent control law is passed in the city of Portland. If the equilibrium rent for a one bedroom apartment is $1,500 per month then




A. There will be a shortage of one bedroom apartments if the rent ceiling is below $1500 per month
B. There will be a shortage of one-bedroom apartments if the rent ceiling is $1500 per month
C. There will be a surplus of one bedroom apartments if the rent ceiling exceeds $1500 per month
D. there will be a shortage of one-bedroom apartments if the rent ceiling exceeds $1500 per month


Answer: A