A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because
A) landlords of previously barely profitable apartments refuse to rent them.
B) the supply of housing increases.
C) fewer tenants will search for housing.
D) demand for housing will increase.
E) the supply curve of housing immediately shifts leftward.

Question

Quizplus · Accepted Answer

Landlords of previously barely profitable apartments will refuse to rent them due to the low rent ceiling, resulting in a decrease in the quantity of housing supplied.

A Rent Ceiling Set Below the Equilibrium Rent Decreases the Quantity