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The Deadweight Loss in a Housing Market with a Rent

Question 4

Multiple Choice

The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the


A) loss to those who cannot find apartments and the gain to landlords who charge black market rents.
B) loss to tenants and the gain to landlords who have the incentive to offer more apartments for rent.
C) gain to landlords and to tenants because now a fairer rent is charged.
D) loss to landlords and the gain to tenants who pay a fairer rent.
E) loss to those who cannot find apartments and the loss to landlords who cannot offer housing at the lower rent ceiling.

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