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The Government Imposes a Maximum Rent on Flats and Apartments

Question 19

Multiple Choice

The government imposes a maximum rent on flats and apartments that is below the equilibrium rent. You accurately predict that:


A) the new law will create a surplus of flats and apartments to rent
B) renters will find that landlords start offering to furnish the flats
C) landlords are less likely to do routine maintenance work in the flats
D) the new law will have no economic impact

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