Why if federal environmental rulings forced strict limits on street parking in midtown New York, parking-garag

why if federal environmental rulings forced strict limits on street parking in midtown New York, parking-garage rates rose. what would happen if parking-garage rate were held down by law?

Answer:
If there is stricter parking rule then the demand for parking garages will rise. It would shift the demand curve to the right. In an ideal market the Price would increase and the Quantity will also increase.

In the second statement you say" rates were held down by law" so I'm guessing there's a price ceiling in place. If that's the case then there would be a higher Quantity demand than Quantity Supplied in the market, since there is a maximum price that set by law. So there will be a shortage of parking garage spots.

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