Question

Based on the graph, what is the excess demand for apartments in this economy after the application of rent control?

A).8B).15C).19D).23E).34

Answer 1

it is 19. You subtract 15 from 34.

Answer 2

ANSWER: C).19

EXPLANATION: The application of Rent Control shows that the rent of the apartments has been sealed at $420. So, according to the graph, the demand for apartments are 34 whereas the supply or availability of apartments are only 15. So we can conclude that the Excess Demand is equal to Total Demand - Total Supply which is 34 - 15 = 19.