Question

Which of the following statements illustrates a rent ceiling​? A. The interest on mortgage loans has gone up to 4.87 percent in 2013. B. In Los​ Angeles, tenants have to pay a rent as high as​ $2,200 per​ month, so people prefer buying houses. C. Bluestone Properties is permitted to charge a rent of​ $2,350 for​ 2-bedroom apartments that would rent for​ $2,500 in an unregulated market. D. A housing shortage due to floods last summer has resulted in a rise in apartment rents in Denver

Answer 1

Answer:

C. Bluestone Properties is permitted to charge a rent of​ $2,350 for​ 2-bedroom apartments that would rent for​ $2,500 in an unregulated market. 

Explanation:

Rent ceiling is a form of price control which is known as price ceiling.

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

Rent ceiling increases consumer surplus and reduces Producer surplus.

Rent ceiling can lead to shortage of houses and emergence of black market.

Price ceiling is binding when it is set below equilibrium price.

I hope my answer helps you