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.

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Definitions:

95-Day Note

A financial instrument specifying repayment of a loan or debt within 95 days.

5-Month Note

A short-term financial instrument that matures or is due for payment in five months.

Calculating Interest

The process of determining the cost of borrowing money or the earnings from lending money, based on the principal amount, rate, and time period.