A rent ceiling set above the equilibrium rent efficiently allocates resources in the housing market.

Name: A rent ceiling set above the equilibrium rent efficiently allocates resources in the housing market.
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Question

Quizplus · Accepted Answer

A rent ceiling set above the equilibrium rent has no effect on the market because it does not constrain the market forces; the equilibrium rent will prevail, and resources will be allocated as if there were no ceiling.

A Rent Ceiling Set Above the Equilibrium Rent Efficiently Allocates