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Answer on Macroeconomics Question 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.
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