A housing shortage results when
A) a tax is imposed on housing.
B) a rent ceiling below the equilibrium rent is imposed.
C) a rent ceiling above the equilibrium rent is imposed.
D) rents rise.
E) a rent floor below the equilibrium rent is imposed.

Question

Quizplus · Accepted Answer

A housing shortage occurs when the quantity of housing demanded exceeds the quantity supplied. This situation is most directly caused by a rent ceiling set below the equilibrium rent, as it artificially lowers the price landlords can charge, leading to a decrease in the quantity of housing supplied while increasing the quantity demanded, resulting in a shortage.

A Housing Shortage Results When