Rent controls are an example of a
A) price floor.
B) price ceiling.
C) price floor for the consumer and a price ceiling for the producer.
D) nonprice rationing device.

Question

Quizplus · Accepted Answer

Rent controls set a maximum price that landlords can charge for rent, which is an example of a price ceiling. It prevents landlords from raising rent above a certain level, but it also creates shortages of available rental properties and disincentivizes landlords from maintaining their properties. It can also lead to black markets and discrimination in tenant selection.

Rent Controls Are an Example of a