In a housing market with no rent ceilings,the equilibrium rent is that for which the quantity of apartments demanded
A) equals the quantity supplied.
B) is greater than the quantity supplied.
C) is less than the quantity supplied.
D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or vertical.
E) None of the above answers is correct because without rent ceilings there is no equilibrium rent.

Question

Quizplus · Accepted Answer

In a housing market with no rent ceilings, the equilibrium rent is determined by the interaction of the demand and supply curves. At the equilibrium rent, the quantity of apartments demanded by renters is exactly equal to the quantity supplied by landlords. This ensures that there are no shortages or surpluses of apartments, and the market clears. Therefore, the correct choice is A) equals the quantity supplied.

In a Housing Market with No Rent Ceilings,the Equilibrium Rent