One Consequence of Rent Ceilings Set Below the Equilibrium Rent

question 241

Multiple Choice

One consequence of rent ceilings set below the equilibrium rent is that

• A) a surplus of housing units develops.
• B) renters are no longer exploited by landlords.
• C) it makes the long-run housing supply more elastic.
• D) search costs for housing increase.

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Definitions:

Federal Government

A system in which power is divided between a national (federal) government and various regional governments.

Largest Employer

The individual organization or entity that employs the highest number of workers in a given area, sector, or country.

Minority Rights

Minority rights are the normal individual rights as applied to members of racial, ethnic, class, religious, linguistic, or sexual minorities; and also the collective rights accorded to minority groups.

Majority Rule

A principle that the decision of a group should reflect the preference of more than half of those participating.