Rent controls set a price ceiling below the equilibrium price and therefore:
A) quantity supplied exceeds the quantity demanded.
B) quantity demanded exceeds the quantity supplied.
C) a surplus of rental units will result.
D) poor people will obviously and clearly be helped.

Question

Quizplus · Accepted Answer

Rent controls create excess demand (quantity demanded exceeds quantity supplied) as the price is artificially lowered below the market equilibrium price, which leads to shortages and long waiting lists for affordable housing.

Rent Controls Set a Price Ceiling Below the Equilibrium Price