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.
Correct Answer:
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Q1: In a market with a rent ceiling
Q2: A price ceiling
A) can create a black
Q3: With a rent ceiling set below the
Q5: One of the consequences of a rent
Q6: In a housing market with a rent
Q7: The deadweight loss from a rent ceiling
Q8: When a rent ceiling below the equilibrium
Q10: An illegal market in which the price
Q11: A black market for housing exists because
Q16: ![]()
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