-If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?
A) A housing surplus
B) Reduced search activity
C) Black market activity
D) A building boom
E) None of the above answers is correct because, to have an impact, the rent ceiling must be above the equilibrium rent.

Question

-If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?
A) A housing surplus 
B) Reduced search activity 
C) Black market activity 
D) A building boom 
E) None of the above answers is correct because, to have an impact, the rent ceiling must be above the equilibrium rent.

Quizplus · Accepted Answer

When a rent ceiling is imposed below the equilibrium rent, it typically leads to a shortage of available housing because the price is artificially kept lower than what the market would naturally determine. This shortage often encourages black market activities, where housing may be rented out at higher prices unofficially.

-If a Rent Ceiling Is Imposed That Is Less Than