Rent control a. is an example of a price ceiling. b. leads to a larger shortage of apartments in the long run than in the short run. c. leads to lower rents and, in the long run, to lower-quality housing. d. All of the above are correct.

D) All of the above are correct.

Explanation:

A price ceiling will always result in economic deficiencies and deadweight loss. The quantity supplied will decrease since the price set is below the equilibrium price, and the quantity demanded will increase due to the same reason. A shortage of products or services results from price ceilings.

The deadweight loss results from the loss of economic efficiency and is represented by the area below the demand curve and above the supply curve, which is left of the equilibrium price. In the long run, the total quantity of units available will lower and the quality of the units will also lower.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.