Assuming That the Rent Ceiling Is Strictly Enforced So That

question 12

Multiple Choice

Assuming that the rent ceiling is strictly enforced so that there is no black market,which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?

• A) The rent for housing equals the ceiling rent or higher.
• B) There is excess supply of housing.
• C) The rent ceiling increases the amount of producers' surplus.
• D) The rent ceiling creates a deadweight loss.
• E) The rent ceiling enforces efficiency upon the housing market.

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Definitions:

Hedonistic Consumption

The pursuit of pleasure and sensory gratification from the consumption of goods and services.

Positive Reinforcement

A technique used in behavior modification that involves rewarding a behavior in order to increase the likelihood of its recurrence.

Unconditioned Response

An Unconditioned Response is an automatic, reflexive reaction to an unconditioned stimulus that occurs without prior learning or conditioning.

Product Line Extension

Involves adding new products to an existing product line to attract more customers or to capitalize on established reputations.