58. Which of the following will most likely result from rent controls that reduce monthly rental rates below market equilibrium? a. Shortages and black markets for rental housing will develop. b. The quality of rental housing will improve. c. The future supply of rental housing will increase rapidly. d. Discrimination against minorities and persons with unconventional lifestyles will decline in the rental housing market. ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: The Economics of Price Controls KEY: Bloom's: Comprehension59. A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as 60. A price floor that sets the price of a good above market equilibrium will cause
61. If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen? 62. Which of the following will most likely occur when government price controls fix the price of a good above market equilibrium? a. Waiting lines to buy the good will develop. b. The quality of the good will deteriorate. c. Consumers will buy more than they would at the market equilibrium price. d. A surplus of the good will develop. ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: The Economics of Price Controls KEY: Bloom's: Comprehension63. A price floor set above an equilibrium price tends to cause persistent imbalances in the market because
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