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Determining Market Price

Question 9 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

The price ceiling means there will be in the supply of rental spaces.

Answer
A
a shortage
B
a surplus
C
an increase

Explanation

A price ceiling keeps rent below the market equilibrium price. At that lower price, more people want to rent spaces, while landlords are willing to supply fewer, so quantity demanded exceeds quantity supplied. This creates a shortage of rental spaces, choice A.

AI-written and checked against the verified answer.

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