A price ceiling must be set above equilibrium to have any effect on the market for housing.

Question

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A price ceiling is a government-imposed limit on how high a price can be charged for a particular good or service. If the price ceiling is set above the equilibrium price, it will have no effect on the market for housing, as the market will still operate at the equilibrium price. In order for the price ceiling to have an effect, it must be set below the equilibrium price, which can create shortages and other market distortions.

A Price Ceiling Must Be Set Above Equilibrium to Have