Exhibit 4-11

-Refer to the exhibit.In a rental market like the one in the exhibit, suppose the government imposes a rule that rent cannot exceed $750 per month.What would this rule be called?

Question

Exhibit 4-11
 
-Refer to the exhibit.In a rental market like the one in the exhibit, suppose the government imposes a rule that rent cannot exceed $750 per month.What would this rule be called?

Quizplus · Accepted Answer

The government-imposed rule that rent cannot exceed $750 per month is called a price ceiling. It sets a maximum limit on how much landlords can charge for rent. This can lead to a situation where the quantity demanded for housing exceeds the quantity supplied, creating a shortage in the rental market.

Exhibit 4-11 -Refer to the Exhibit.In a Rental Market Like the One