What's a direct long-run effect of imposing rent controls on ...

[lracut11]

What's a direct long-run effect of imposing rent controls on apartments?
 
  A) A rise in demand for rent controlled apartments
  B) A fall in demand for rent controlled apartments
  C) A fall in the supply of rent controlled apartments
  D) A rise in the supply of rent controlled apartments

Question 2

Electric utilities are often considered natural monopolies and are regulated.
 
  When would the price be highest: when the utility is not regulated, when it is regulated using an average cost pricing rule, or when it is regulated using a marginal cost pricing rule? When would its price be lowest?

[joneynes]

Answer to Question 1

C

Answer to Question 2

The price would be highest if the utility was left unregulated and could set the profit-maximizing price. The price is lowest if the utility is regulated using a marginal cost pricing rule.