A black market for housing exists because of a rent ceiling.The rent for housing in the black market is
A) the same as the equilibrium rent.
B) lower than the ceiling rent.
C) somewhere between the ceiling rent and the maximum rent a tenant is willing to pay.
D) somewhere between zero and the equilibrium rent.
E) not defined because the market is not legal.

Question

Quizplus · Accepted Answer

A black market for housing emerges when the legal market is restricted by a rent ceiling, leading to prices that are higher than the ceiling but below the maximum a tenant is willing to pay, as demand exceeds supply at the ceiling price.

A Black Market for Housing Exists Because of a Rent