Which of the following would be the least likely result of a price ceiling imposed in the market for rental cars?
A) slow replacement of old rental cars with new ones
B) poor maintenance of the rental cars
C) dirtier exteriors and interiors of rental cars
D) free gasoline given to people as an incentive to rent a car

Question

Quizplus · Accepted Answer

A price ceiling would result in increased demand for rental cars, and rental car companies would have less incentive to offer additional incentives such as free gasoline. Therefore, it is unlikely that free gasoline would be given as an incentive if a price ceiling is in place. Choices A, B, and C are all possible negative outcomes of a price ceiling, as rental car companies may have less funds to invest in maintenance and upkeep of their vehicles.

Which of the Following Would Be the Least Likely Result