Below is current housing market in the Twin Cities. The market is...

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Below is current housing market in the Twin Cities. The market is in equilibrium today.

What happens if the government decides to set a price ceiling at $1500?

(I) The rent price will increase(II) The demand for rental housing will decrease

(III) The supply for rental housing will increase

(IV) The quantity demanded for housing will fall

(III) only

❌

(II) only

❌

None of the above

✅

(I) only

❌

(IV) only

❌

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