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:

Supply and Demand Curves

Graphical representations in economics that illustrate the relationship between the supply of goods and services and their prices in the market.