Rent Controls Usually Set a Price Ceiling Below the Equilibrium

question 60

Multiple Choice

Rent controls usually set a price ceiling below the equilibrium price,and therefore:

• A)quantity supplied exceeds the quantity demanded.
• B)quantity demanded exceeds the quantity supplied.
• C)a surplus of rental units will result.
• D)all low-income recipients will clearly be helped.

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Definitions:

Discontinuity Effect

A phenomenon in group behavior where individuals in groups are more likely to engage in aggressive or competitive behavior than individuals acting alone.

Hostile Competition

A form of competition that includes negative behaviors, such as sabotage or aggression, to win or gain an advantage.

Peaceful Societies

Communities or cultures that are characterized by low levels of violence and a high degree of social harmony and cooperation.

Cooperative Societies

Organizations owned and run jointly by its members, who share the benefits or profits equally or according to their contribution.