A Rent Ceiling Creates a Shortage

question 224

Multiple Choice

A rent ceiling creates a shortage. As a result, which of the following occurs?

• A) only a loss of consumer surplus for tenants
• B) only a loss of producer surplus for landlords
• C) a loss of both consumer and producer surplus
• D) a gain of both consumer and producer surplus

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Definitions:

Fort Henry

A historical fortification, which can refer to several locations in different countries, known for its strategic military significance.

Fort Donelson

A historic site in Tennessee, known for being a battleground during the American Civil War where Union forces captured the Confederate fort in 1862.

Mississippi River

One of the longest rivers in North America, flowing from Minnesota to the Gulf of Mexico, and playing a crucial role in the ecology, economy, and history of the United States.

Anaconda Plan

A strategic plan during the American Civil War aiming to blockade Confederate ports and split the Confederacy by seizing control of the Mississippi River.