A Price Ceiling, Such as a Rent Ceiling

question 272

Multiple Choice

A price ceiling, such as a rent ceiling

• A) always results in a surplus.
• B) always results in a shortage.
• C) results in a surplus if the ceiling price is less than the equilibrium price.
• D) results in a shortage if the ceiling price is less than the equilibrium price.

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Definitions:

Equitable Estoppel

A legal defense tool that prevents a party from taking back a promise or from arguing against facts they previously admitted to, when another party has relied on that promise or those facts.

Legal Obligation

A duty enforced by law, requiring an individual or entity to conform to certain conduct or to refrain from certain actions.

Gratuitous Promise

A promise made without expecting anything in return, which is generally not enforceable in contract law unless it is made in a deed.

Existing Duty

An obligation that is currently in effect under the law or within the terms of a contract.