When a rent ceiling law is passed in a city,which of the following occurs?
A) The total price of renting an apartment decreases to all renters.
B) The quantity of apartments supplied does not change.
C) Some landlords and renters use methods such as "key money" to get around the rent ceiling law.
D) Renters have no trouble finding a nice, reasonably priced apartment to rent.
E) Generally the number of renters in the city increases because people move to the city to take advantage of the low-rent apartments.

Question

Quizplus · Accepted Answer

When a rent ceiling law is passed, landlords may use various methods to get around the law such as demanding additional payments like key money. Therefore, option C is the most accurate answer. Option A is incorrect because it assumes that the total price for renting an apartment will decrease for all renters, which is not true. Option B is also not always accurate because if landlords find it unprofitable to rent their apartments under the ceiling, they may reduce the number of apartments supplied. Option D and E are incorrect because a rent ceiling law may not necessarily lead to an abundance of affordable housing or an influx of renters in the city.

When a Rent Ceiling Law Is Passed in a City,which