Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

A government sets a ceiling on rent so that rented accommodation becomes more affordable. What long-term result is likely if the ceiling is fixed below the present free market price?

  • Aa shortage of applicants for rented housing
  • Ba shortage of rented housing
  • Can increase in supply to satisfy the increased demand for rented housing
  • Dan increase in the number of houses being rented

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