Suppose the market clearing rate for apartments in Yazoo City, Mississippi is 400 per month, but a rent control is set at 600 per month. Which of the following would tend to occur in the community?
A) A shortage of apartments
B) An increase in the quantity demanded for apartments
C) Both of the above.
D) Neither of the above.
Question 2
Refer to the scenario above. Which of the following is true in this case?
A) Firm A's dominant strategy is to choose Strategy X.
B) Firm B's dominant strategy is to choose Strategy Y.
C) Firm A chooses Strategy X if Firm B chooses Strategy Y.
D) Firm A chooses Strategy Y if Firm B chooses Strategy Y.
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