Rent Controls Tend to Cause Persistent Imbalances in the Market

question 16

Multiple Choice

Rent controls tend to cause persistent imbalances in the market for housing because

• A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Direct SBA Loans

Loans provided directly by the Small Business Administration to small businesses that meet certain qualifications.

Natural Disaster

A sudden and devastating event in nature, such as a hurricane, flood, or earthquake, that causes significant damage or loss.

Energy Conservation

The practice of reducing the use of energy through more efficient systems, processes, or behaviors to preserve resources.

Small Businesses

Enterprises or firms that maintain a small number of employees, have comparatively lower volume of sales, and are usually independently owned and operated.