A Rent Ceiling Creates a Shortage

question 264

Multiple Choice

A rent ceiling creates a shortage. As a result, there is

• A) an efficient allocation of housing.
• B) a surplus of housing.
• C) an increase in the producer surplus in the housing market.
• D) a decrease in the producer surplus in the housing market.

---

Definitions:

Fixed Supply

A scenario where the quantity of a good or resource available does not change in response to changes in price.

Property Rights

The entitlement to control, benefit from, and transfer ownership of resources including land, tangible goods, and creations of intellect.

Open Ocean

The vast expanse of saltwater that covers most of the Earth's surface, not close to any land.

User Costs

The expenses incurred through the use of an asset, including depreciation, maintenance, and repair costs.