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-A Rent Ceiling Creates a Deadweight Loss

Question 52

Multiple Choice

  -A rent ceiling creates a deadweight loss A)  if it is set below the equilibrium rent. B)  if it decreases the taxes the government collects in the housing market. C)  if it is set equal to the equilibrium rent. D)  if it set above the equilibrium rent. E)  never, because if it did create a deadweight loss, the government would not impose it.
-A rent ceiling creates a deadweight loss


A) if it is set below the equilibrium rent.
B) if it decreases the taxes the government collects in the housing market.
C) if it is set equal to the equilibrium rent.
D) if it set above the equilibrium rent.
E) never, because if it did create a deadweight loss, the government would not impose it.

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