Exhibit 4-8 As shown in Exhibit 4-8, when a government sets a rent ceiling at $750 per month, the result is a(n)

Question

Exhibit 4-8  As shown in Exhibit 4-8, when a government sets a rent ceiling at $750 per month, the result is a(n)

Quizplus · Accepted Answer

When the government sets a rent ceiling below the equilibrium price, it creates a shortage of rental units as the quantity demanded exceeds the quantity supplied at the lower price. In this case, a rent ceiling of $750 per month is below the equilibrium price, so the result is a shortage.

Exhibit 4-8 as Shown in Exhibit 4-8, When a Government