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In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ .

A. excess supply

B. equilibrium

C. higher price

D. deadweight loss

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940568

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