A rent ceiling results in a shortage. As a result, which of the following do you expect?

Question

Quizplus · Accepted Answer

A rent ceiling creates a shortage of available apartments because the quantity demanded exceeds the quantity supplied at the regulated price. This shortage leads to the creation of a black market for apartments where landlords may charge additional fees or offer other perks to secure the apartment, resulting in a higher effective rent. The other options are unlikely outcomes of a rent ceiling. A shortage of applicants is unlikely because demand for housing typically exceeds supply. Discrimination may occur, but it is not a necessary result of a rent ceiling. In the long-run, individuals may be deterred from becoming landlords due to the regulation and potential limitations on their profits.

A Rent Ceiling Results in a Shortage