Rent controls set a price ceiling below the equilibrium price,and therefore:
A)quantity supplied exceeds the quantity demanded.
B)quantity demanded exceeds the quantity supplied.
C)a surplus of rental units will result.
D)all poor people will be helped.

Question

Quizplus · Accepted Answer

Rent controls will make the price lower than the equilibrium price, which means the quantity demanded will exceed the quantity supplied. As a result, there will be a shortage of rental units, not a surplus. It is not necessarily true that all poor people will be helped with rent controls.

Rent Controls Set a Price Ceiling Below the Equilibrium Price,and