When a Rent Ceiling Below the Equilibrium Rent Is Put

question 227

Multiple Choice

When a rent ceiling below the equilibrium rent is put in place,the outcome is

• A) efficient because marginal benefit equals marginal cost.
• B) inefficient because marginal benefit equals marginal cost.
• C) inefficient because marginal benefit is greater than marginal cost.
• D) inefficient because marginal benefit is less than marginal cost.
• E) efficient because marginal benefit is greater than marginal cost.

---

Definitions:

Second-Class Tickets

Tickets offering a level of service and comfort lower than first-class, often at a lower price.

First-Class Tickets

Tickets that allow access to the highest level of service and amenities available on commercial transportation, such as airlines and trains.

Income

Payment acquired, typically at consistent times, for services performed or through investment profits.

Price

The money amount expected, needed, or conferred as a payment for a product.