Exhibit 4-11

-Refer to the exhibit.In a rental market like the one in the exhibit, suppose the government sets a rent ceiling at $750 per month.What will be the result of imposing this rent ceiling?

Question

Exhibit 4-11
 
-Refer to the exhibit.In a rental market like the one in the exhibit, suppose the government sets a rent ceiling at $750 per month.What will be the result of imposing this rent ceiling?

Quizplus · Accepted Answer

Imposing a rent ceiling below the equilibrium rent will result in a shortage of rental housing. At the rent ceiling, the quantity of rental housing supplied will be lower than the quantity demanded by renters, creating a shortage.

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