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If Government Establishes a Ceiling on the Price of Rental

Question 23

Multiple Choice

If government establishes a ceiling on the price of rental accommodation lower than the free- market equilibrium price, then


A) the rental housing market will be unaffected.
B) construction of new rental units will be encouraged.
C) those people who obtain rental units at the ceiling price will benefit.
D) a surplus of current rental units will develop.
E) the current stock of rental housing will be better maintained as there is a shortage of housing.

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