The graph below depicts the market for rental apartments. The market equilibrium rent is $1,000 per month, at which 1,200 apartments are rented. The government imposes a price ceiling of $600 per month, as indicated by the horizontal price ceiling (PC) line.
Rental Apartment Market
Monthly Rent
1000
51
1500
1100
1000
300
700
00
450
200
Quantity of Apartments
At the government price ceiling of $600 per month, there is a a shortage of
apartments.

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