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Answer to Question #39433 in Macroeconomics for Ash
Question #39433
A price ceiling is a government price control that sets the maximum allowable price for a good or service. One often cited example is rent control.
A. Explain why rent control creates a shortage of rental housing. Illustrate with a supply/demand graph.
B. What are FOUR other consequences of rent control, in addition to the shortage?
C. Identify the winners and the losers in the rent control situation.
A. Explain why rent control creates a shortage of rental housing. Illustrate with a supply/demand graph.
B. What are FOUR other consequences of rent control, in addition to the shortage?
C. Identify the winners and the losers in the rent control situation.
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