A rent ceiling controls the rent portion of the cost of housing but not the search cost.So when the search cost is ________ the rent,some people end up paying a ________ opportunity cost for housing than they would if there were no rent ceiling.

Question

Quizplus · Accepted Answer

When the search cost is added to the rent, some people end up paying a higher opportunity cost for housing than they would if there were no rent ceiling. This means that the total cost of obtaining housing (rent + search cost) is higher than what it would be without a rent ceiling, thereby resulting in a higher opportunity cost. Option D states this relationship correctly.

A Rent Ceiling Controls the Rent Portion of the Cost