When a Tenant in a Rent-Controlled Apartment Sublets the Apartment

question 50

Multiple Choice

When a tenant in a rent-controlled apartment sublets the apartment to another renter at a rent higher than the price ceiling:

• A)it is inefficient.
• B)the transaction takes place on a black market.
• C)there is an increase in quantity demanded.
• D)there is a decrease in quantity demanded.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, usually with the aim of reducing consumption or generating revenue.

Pretax Level

A financial figure or income amount before any taxes have been deducted.

Excise Tax

A tax levied on specific goods, services, or transactions, often used to discourage their use or raise revenue.

Shift

A change in position, direction, or tendency, often referring to movements in supply or demand curves in economics.