Final answer:
Setting the price for rent at point A would create a shortage of rental housing.
Step-by-step explanation:
When the government sets the price for rent at point A, it is essentially implementing a price ceiling or rent control. This means that the government is limiting the maximum amount that landlords can charge for rent.
In the scenario described, if the price for rent is set at point A ($500), it will create a shortage of rental housing. This is because the quantity demanded (19,000 rental units) exceeds the quantity supplied (15,000 rental units).
Price ceilings like rent control can have unintended consequences. While they may be intended to help renters by keeping prices affordable, they can actually result in fewer apartments being rented out compared to the market price.