Rent Controls Usually Set a Price Ceiling Below the Equilibrium

question 60

Multiple Choice

Rent controls usually set a price ceiling below the equilibrium price,and therefore:

• A)quantity supplied exceeds the quantity demanded.
• B)quantity demanded exceeds the quantity supplied.
• C)a surplus of rental units will result.
• D)all low-income recipients will clearly be helped.

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Definitions:

Actor/Observer Bias

When interpreting our own behavior, the tendency to focus on situations rather than personality traits.

Deindividualization

A psychological state characterized by lowered self-evaluation and decreased concern for social evaluation, leading to uncharacteristic behavior, often in group contexts.

Ingroup/Outgroup Bias

A cognitive bias that causes individuals to view those within their own group more positively than those outside their group.

Just World Hypothesis

The just world hypothesis is the belief that people get what they deserve in life, leading individuals to rationalize injustice or misfortune that befalls others.