Author Question: A price ceiling: a. is the lowest price that the law will allow to be charged in the market. b. is ... (Read 115 times)

robinn137 · **on:** Jun 30, 2018

A price ceiling:
a. is the lowest price that the law will allow to be charged in the market.
b. is the highest price that the law will allow to be charged in the market.
c. is the price that must be charged in the market.
d. would be imposed if the government believes the market equilibrium price is too low.
e. would only be applicable in the case of non-essential goods.

Question 2

Rent controls create distortions in the housing market by:
a. increasing rents received by landlords
b. raising property values.
c. encouraging landlords to overspend for maintenance.
d. discouraging new housing construction.
e. increasing the supply of housing in the long run.