When a Rent Ceiling Below the Equilibrium Rent Is Put

question 227

Multiple Choice

When a rent ceiling below the equilibrium rent is put in place,the outcome is

• A) efficient because marginal benefit equals marginal cost.
• B) inefficient because marginal benefit equals marginal cost.
• C) inefficient because marginal benefit is greater than marginal cost.
• D) inefficient because marginal benefit is less than marginal cost.
• E) efficient because marginal benefit is greater than marginal cost.