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.