-A Rent Ceiling Creates a Deadweight Loss

question 52

Multiple Choice

-A rent ceiling creates a deadweight loss

• A) if it is set below the equilibrium rent.
• B) if it decreases the taxes the government collects in the housing market.
• C) if it is set equal to the equilibrium rent.
• D) if it set above the equilibrium rent.
• E) never, because if it did create a deadweight loss, the government would not impose it.

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