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Dovator [93]
3 years ago
9

A binding price ceiling on apartments (effective rent control) will:

Business
1 answer:
My name is Ann [436]3 years ago
4 0

Answer:

D) cause the quantity demanded to exceed the quantity supplied of rental housing.

Explanation:

A price ceiling is a binding government regulation in which it puts a cap on the price landlords can charge tenants to rent their properties. If this happens, there could be a rapid significant increase in the demand of apartments. This would lead  to excess demand that the existing  supply cannot meet , creating a shortage. The property owners may also choose to not rent their apartment at that lower price driving the supply even lower.

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