In a rental market like the one in the figure given below, a government-imposed rule that rent cannot exceed $750 per month is referred to as:
Figure 4.9

Question

In a rental market like the one in the figure given below, a government-imposed rule that rent cannot exceed $750 per month is referred to as:​ ​
Figure 4.9

Quizplus · Accepted Answer

A government-imposed rule that limits the maximum price that can be charged for a good or service is called a price ceiling. In this case, the rule that rent cannot exceed $750 per month is a price ceiling. It is intended to protect renters and prevent landlords from charging excessively high prices, but it can also lead to a shortage of rental housing and reduce the quality of existing units.

In a Rental Market Like the One in the Figure