Record the single best answer on both the scanner form and this question sheet, which you keep to grade your own test.
Water has enormous value in use but has a low market price.
This apparent paradox is explained by the idea of a . comparative advantage. Suppose that a local government imposes a rent control for small apartment units below the price that would be set in a competitive market. The rent control will have no economic effect. There will be a shortage of small apartment units. There will be a surplus of small apartment units.