A Rent Ceiling Results in a Shortage

question 105

Multiple Choice

A rent ceiling results in a shortage. As a result, which of the following do you expect?

• A) The shortage will persist as long as the ceiling is in effect.
• B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender.
• C) A black market for apartments whereby higher rents are obtained through various other charges.
• D) All of the above would be expected.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the customer.

Decision-making Framework

A structured approach or set of guidelines to navigate and systematically make decisions, often involving identifying options, analyzing consequences, and selecting the best course of action.

Four Major Drivers

Refers to the primary forces or factors that drive decision-making, strategy, and success in businesses or other organizations, though the specific drivers can vary by context.

Absentee Landlord

A property owner who does not live on-site or participate actively in managing their rental property.