In the rental housing market with price controls,the quantity of rental houses demanded exceeds the quantity of rental housing supplied.This price control must be a:
A)price ceiling.
B)price floor.
C)quota.
D)quantity control.

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged for a product or service, in this case, rental housing. When the government sets a price ceiling below the market equilibrium price, a shortage of rental housing arises as the quantity demanded exceeds the quantity supplied. Therefore, it is necessary to understand that this price control must be a price ceiling.

In the Rental Housing Market with Price Controls,the Quantity of Rental