Answer to Question #39433 in Macroeconomics for Ash
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.