When a Rent Ceiling Law Is Passed in a City,which

question 42

Multiple Choice

When a rent ceiling law is passed in a city,which of the following occurs?

• A) The total price of renting an apartment decreases to all renters.
• B) The quantity of apartments supplied does not change.
• C) Some landlords and renters use methods such as "key money" to get around the rent ceiling law.
• D) Renters have no trouble finding a nice, reasonably priced apartment to rent.
• E) Generally the number of renters in the city increases because people move to the city to take advantage of the low-rent apartments.

---

Definitions:

Comparative Advantage

The ability of a country, company, or individual to produce a good or service at a lower opportunity cost than competitors.

Proximity

The state of being close or near in space, time, or relationship.

Natural Resources

Naturally occurring materials such as minerals, water, and fertile land that can be used for economic gain.

International Organization

An entity formed by sovereign states or civil societies to work on common areas of interest such as peace, security, and development on a global scale.