​Rent Controls Can Cause

question 315

Multiple Choice

​Rent controls can cause

• A)​a decline in the quality of housing available for rent.
• B)​the development of a black market to allocate apartments to renters.
• C)​longer search times for renters attempting to locate an apartment.
• D)​all of these are possible results of rent controls.

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Definitions:

Total Utility

Full contentment gained from the intake of a particular total volume of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer experiences from consuming one more unit of a good or service.

Consumer Surplus

The incongruity between the maximum amount consumers are willing and able to pay for a good or service and the actual amount they end up paying.

Total Utility

The overall satisfaction or pleasure a consumer derives from consuming a certain amount or combination of goods and services.