
The figure shows the market for apartments in Rivercity. If the government imposes a rent ceiling of $400 which of the following will occur?
i.
There will be increased search activity.
ii.
A shortage of apartments will occur.
iii.
A deadweight loss will occur.
◦ i, ii and iii
◦ i only
◦ ii and iii only
◦ i and ii only
◦ ii only