If the Government Imposes a Maximum Rent for Housing That

question 8

Multiple Choice

If the government imposes a maximum rent for housing that is above the equilibrium price, then you predict that

• A)the law will have no effect in the market for housing.
• B)the law will generate a shortage of housing.
• C)the law will create a surplus of housing.
• D)the demand curve for housing shifts rightward.
• E)the supply curve of housing shifts leftward.

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Definitions:

Unlawful Act

An action that is forbidden by law or legislation.

Statute

A written law passed by a legislative body at the federal, state, or local level, which governs society and is enforceable by the courts.

Summary Judgment

A summary judgment is a legal determination made by a court without a full trial, granted when there is no dispute over the material facts of the case and one party is entitled to judgment as a matter of law.

Probable Cause

A reasonable ground for belief that someone may have committed a crime, warranting their arrest or the issuance of a search warrant.