How can the quantity supplied of apartments by Dr. Robert Murphy

Question 2 / 49: How can the quantity supplied of apartments fall, even in the short run? Isn't there a fixed number of apartment units at any given time?

Answer:

Remember that the quantity supplied means the number of apartment units offered for rent. As the legally permissible price

falls, more and more owners won't find it worthwhile to go through the hassle and risk of renting their physically available rooms to total strangers.

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Interventionism: The Mixed Economy

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Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

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