The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the
A) loss to those who cannot find apartments and the gain to landlords who charge black market rents.
B) loss to those who cannot find apartments and the loss to landlords who cannot offer housing at the lower rent ceiling.
C) loss to landlords and the gain to tenants who pay a fairer rent.
D) loss to tenants and the gain to landlords who have the incentive to offer more apartments for rent.
E) gain to landlords and to tenants because now a fairer rent is charged.
Correct Answer:
Verified
Q16: Q17: When a price ceiling below the equilibrium Q18: A rent ceiling set below the equilibrium Q19: With a rent ceiling set below the Q20: A price ceiling Q22: When a rent ceiling below the equilibrium Q23: Which of the following decrease the deadweight Q24: Assuming that the rent ceiling is strictly Q25: The opportunity cost of an apartment in Q26: A rent ceiling below the equilibrium rent![]()
A) is an illegal price.
B)
A)
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