Which one of the following is not likely to be an outcome of a rent ceiling?
A)a black market for rent-controlled housing
B)long waiting lists of potential renters for rent-controlled housing
C)a short-run shortage of housing
D)a black market price below the rent ceiling
E)increased search activity for rent-controlled housing

Question

Quizplus · Accepted Answer

A black market price below the rent ceiling is not likely to be an outcome of a rent ceiling. A rent ceiling is a price control that sets a maximum legal price for renting any unit, and a black market price below the rent ceiling implies that the market price is lower than the legally set rent ceiling, which is not possible. The other options listed are all common outcomes of rent ceilings.

Which One of the Following Is Not Likely to Be