Solved

A Rent Ceiling Creates a Deadweight Loss

Question 103

Multiple Choice

A rent ceiling creates a deadweight loss


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions