Does a price ceiling on rental units always have its desired effect of providing low cost apartments to low income families? Explain what you have learnt in this chapter.

Suppose that the manager of a major grocery store says:" We will soon reach a limit if we continue to serve more and more customers. We will run into diminishing marginal returns to labour." Is the manager referring to the short run or the long run? Can you think of a concrete example what the manager might have noticed?