Rent ceilings
A) increase search activity.
B) result in surpluses.
C) create efficiency.
D) benefit producers.
E) have no effect if they are set below the equilibrium rent.

Question

Quizplus · Accepted Answer

Rent ceilings create a shortage of rental housing as the quantity supplied at the ceiling price is less than the quantity demanded. This shortage increases search activity among tenants who are looking for affordable housing.

Rent Ceilings