A binding rent-control price ceiling does NOT result in:
A)inefficiently low transaction costs.
B)wasted resources of consumers caused by time spent searching for the good.
C)inefficient allocation of the good to consumers.
D)inefficiently high quality of the good being sold.

Question

Quizplus · Accepted Answer

A binding rent-control price ceiling can lead to a reduction in the quality of the good being sold as landlords may have less incentive to maintain and improve their properties. However, it does not lead to inefficiently low transaction costs (it may actually increase search costs for tenants), wasted resources of consumers due to search time, or inefficient allocation of the good to consumers (as long as the price ceiling is not set below the market-clearing price).

A Binding Rent-Control Price Ceiling Does NOT Result In