Question

suppose the government of greenville, after receiving numerous complaints from residents about rising housing costs, imposed a rent control regulation which limits the rent to $2000 for a 1 - bedroom apartment. this limit is below the market rate of $2500 for such apartments. 1. this regulation is a type of select 2....and is likely to create a select tax price floor price ceiling 3....which over a longer perio select 4....because the supply and demand for the apartments are select in the long run.

Explanation:

1. A rent - control regulation that limits rent below the market rate is a price ceiling as it sets a maximum price.
2. Price ceilings below the equilibrium price usually create shortages as quantity demanded exceeds quantity supplied.
3. In the long - run, supply and demand for apartments are more elastic. When there is a price ceiling, the shortage becomes more pronounced because suppliers can adjust their supply more and demand can also adjust more in response to the price limit.

Answer:

1. price ceiling
2. shortage
3. more elastic