A binding rent-control price ceiling results in all of the following EXCEPT:
A) inefficiently low quantity of the good exchanged.
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 typically leads to a lower quality of goods being sold, not higher, as landlords have less incentive to maintain or improve properties when they cannot charge market rates.

A Binding Rent-Control Price Ceiling Results in All of the Following