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.

---

Definitions:

Unjustly Enriched

A legal term describing a situation where one party benefits at another's expense without a valid basis for the gain.

Statute of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Unenforceable

A term applied to a contract or clause that, for legal reasons, cannot be enforced by a court.

Undue Influence

A situation where an individual is able to influence another person's decisions due to the power or trust they hold over them, often leading to unfair outcomes.