When a tenant in a rent-controlled apartment sublets the apartment to another renter at a rent higher than the price ceiling:
A)it is inefficient.
B)the transaction takes place on a black market.
C)there is an increase in quantity demanded.
D)there is a decrease in quantity demanded.

Question

Quizplus · Accepted Answer

Subletting at a rent higher than the price ceiling takes place on a black market, as it is illegal under rent control laws. The transaction is not recorded and regulated by the government, leading to potential inefficiencies and unfairness in the rental market.

When a Tenant in a Rent-Controlled Apartment Sublets the Apartment