Rent Controls Set a Price Ceiling Below the Equilibrium Price

question 10

Multiple Choice

Rent controls 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) poor people will obviously and clearly be helped.

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Definitions:

Contract Formation

The process by which parties reach an agreement on the terms of a contract, creating mutual obligations enforceable by law.

Revocation

In general, the recalling or voiding of a prior action. In contract law, the withdrawal of an offer by the offeror prior to effective acceptance by the offeree.

Dispatched

The act of sending someone or something off to a destination or for a specific purpose, often related to the delivery of goods or services.

Power To Revoke

The legal authority to cancel or withdraw a decision, offer, or agreement.