In your city, it is illegal to charge more than a certain amount of money for an apartment. People have been signing leases for the highest legal amount, but also agreeing to pay a monthly bribe "on the side" to their landlord in order to get the apartment in the first place and to get timely maintenance. What is the effect of the bribes?
A) The bribes make it harder to find an apartment.
B) The bribes cause there to be unexploited gains from trade.
C) The bribes cause apartments to be allocated to renters who do not have the highest-valued use of the apartments.
D) The bribes minimize the damage from the rent control.

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The Answer of In your city, it is illegal to charge more than a certain amount of money for an apartment. People have been signing leases for the highest legal amount, but also agreeing to pay a monthly bribe "on the side" to their landlord in order to get the apartment in the first place and to get timely maintenance. What is the effect of the bribes?
A) The bribes make it harder to find an apartment.
B) The bribes cause there to be unexploited gains from trade.
C) The bribes cause apartments to be allocated to renters who do not have the highest-valued use of the apartments.
D) The bribes minimize the damage from the rent control.

In Your City, It Is Illegal to Charge More Than