You own an apartment complex made up of 10 units each of which is rented out at a monthly rent of $1000. you purchased the facility 2 years ago for $1,000,000, and plan to hold the complex for another 8 years at which time you expect to sell the facility for $1,800,000. assume your costs of operation for the complex (upkeep, property taxes, employee wages, etc.) amount to $7,500 per month. if you expect to reinvest any cash flows (net income) from the apartment complex at an annual reinvestment rate of 6.0%, what is your expected horizon yield for this real estate investment

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.