Which of the Following Is an Impact of a Rent

question 176

Multiple Choice

Which of the following is an impact of a rent ceiling set below the equilibrium rent?

• A) Renters find apartments to rent more rapidly because the rent ceiling is lower.
• B) Landlords' incentives to provide apartments decrease.
• C) The supply of apartments increases as soon as the rent ceiling is imposed.
• D) A surplus of housing occurs.
• E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.

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Definitions:

Operating Expenses

Expenses incurred during the normal functioning of a business, excluding the cost of goods sold; these can include salaries, rent, utilities, and marketing expenses.

Closing Entries

journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next period.

Capital Account

A financial statement that shows the changes in a company's equity throughout an accounting period, including contributions from and distributions to owners.

Withdrawals Account

An account used to track money taken out of a business by its owner(s) for personal use.