-The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the quantity of housing rented in Appleville is

Question

Quizplus · Accepted Answer

A rent ceiling set below the equilibrium price (where supply equals demand) typically results in a shortage of housing because the quantity demanded exceeds the quantity supplied at that price point. This leads to a situation where the actual quantity of housing rented is below the efficient level, where the efficient level is the quantity at the equilibrium price without a price ceiling.

-The Figure Above Shows the Housing Market in the City