-Rent ceilings
A) allocate resources efficiently.
B) benefit all landlords because the landlords know what rent to charge their renters.
C) benefit renters living in rent-controlled apartments.
D) eliminate the problem of scarcity.
E) ensure that housing goes to poorer people.

Question

-Rent ceilings
A) allocate resources efficiently. 
B) benefit all landlords because the landlords know what rent to charge their renters. 
C) benefit renters living in rent-controlled apartments. 
D) eliminate the problem of scarcity. 
E) ensure that housing goes to poorer people.

Quizplus · Accepted Answer

Rent ceilings, or rent controls, benefit renters living in rent-controlled apartments by making housing more affordable for them. However, they can lead to inefficiencies in the housing market, such as shortages and reduced quality of housing, because they distort the natural functioning of the supply and demand mechanism.

-Rent Ceilings