Sherry wants to rent an apartment. Although rents are below what she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional 1,000 to have the locks changed.
Sherry has just experienced the effects of ________. A) a rent floor with a black market
B) inelastic demand
C) a market working efficiently
D) a rent ceiling
Question 2
If the demand curve for a good is a downward sloping straight line, the demand for the good will be more price elastic the higher is the
A) price of the good.
B) price of complements.
C) income of consumers.
D) income elasticity of demand for that good.
