A binding price ceiling on apartments (effective rent control) will:

(A) increase the quantity supplied of rental housing.
(B) decrease the quantity demanded of rental housing.
(C) create a greater quantity supplied of rental housing to be made available to renters.
(D) cause the quantity demanded to exceed the quantity supplied of rental housing.

Respuesta :

Answer:

D) cause the quantity demanded to exceed the quantity supplied of rental housing.

Explanation:

A price ceiling is a binding government regulation in which it puts a cap on the price landlords can charge tenants to rent their properties. If this happens, there could be a rapid significant increase in the demand of apartments. This would lead  to excess demand that the existing  supply cannot meet , creating a shortage. The property owners may also choose to not rent their apartment at that lower price driving the supply even lower.