The table shows the demand and supply schedules for on-campus housing Quantity d

Question

The table shows the demand and supply schedules for on-campus housing Quantity demanded Quantity supplied Rent (dollars per month) 250 275 300 325 350 375 If the college puts a strictly enforced rent ceiling on rooms of 5250 a month and a black market develops, the rent in the black market may be as high as $ a month. 5,000 4,500 4,000 3,500 3,000 2,500 4,000 4,000 4,000 4,000 4,000 4,000 If a black market develops, the housing market is O A. unfair according to the fair results view of fairness O B. O C. O D. 0 E. and unfair according to the fair rules view of fairness fair according to the fair results view of fairness and unfair according to the unfair rules view of fairness fair according to the fair results view of fairness and fair according to the fair rules view of fairness unfair only if participants in the black market are apprehended and punished fair according to the fair results view of fairness and unfair according to the fair rules view of fairness

Explanation / Answer

The rent could be as high as $375 dollars per month which is the consumer’s maximum willingness to pay.
Option A. As marginal benefit exceeds marginal cost and it would not provide rooms for the needy students.

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