When a rent ceiling below the equilibrium rent is put in place, the outcome is
A) efficient because marginal benefit equals marginal cost.
B) inefficient because marginal benefit equals marginal cost.
C) inefficient because marginal benefit is greater than marginal cost.
D) inefficient because marginal benefit is less than marginal cost.
E) efficient because marginal benefit is greater than marginal cost.
C
You might also like to view...
Refer to the figure above. If Lithasia opens up to free trade, then which of the following statements is true?
A) The domestic production of pens in Lithasia will increase. B) The domestic price of pens will increase. C) Lithasia will start exporting pens. D) Lithasia will start importing pens.
If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the
a. money supply will increase. b. money supply will decline. c. money stock will stay the same. d. two tools will work in opposite directions and the effect on the money supply is uncertain.