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Rent Controls Tend to Cause Persistent Imbalances in the Market

Question 16

Multiple Choice

Rent controls tend to cause persistent imbalances in the market for housing because


A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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