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:

Habituation Study

Research method that examines how repeated exposure to a stimulus decreases individuals' responses to it over time.

Just-noticeable Difference

The minimum level of stimulation change required to detect a difference between two stimuli.

Egocentrism

The inability to distinguish between one's own perspective and someone else's perspective.

Habituation

A decline in the response to a stimulus once the stimulus has become familiar.