Which of the Following Is NOT a Potential Impact of a Rent

question 309

Multiple Choice

Which of the following is NOT a potential impact of a rent ceiling set below the equilibrium rent?

• A) a surplus
• B) an increase in search
• C) a deadweight loss
• D) None of the above because they are all impacts of a rent ceiling set below the equilibrium rent.

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Definitions:

Partial Equilibrium

An analysis focusing on the equilibrium in a single market without considering its effects on or from other markets.

Equilibrium Conditions

A state in a market where the quantity of a good supplied equals the quantity demanded, resulting in market stability and no pressure for price changes.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity that suppliers are willing to offer for sale over a given period.

Capital Flow

The movement of money for the purpose of investment, trade, or business production.