Sherry wants to rent an apartment. Although rents are below what she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. Sherry has just experienced the effects of

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Sherry's situation indicates a rent ceiling, where the legal maximum rent is set below the equilibrium price, leading to a shortage of available apartments. The additional payment for changing locks suggests a workaround to secure the apartment, a common occurrence when rent ceilings create shortages.

Sherry Wants to Rent an Apartment