If a rent ceiling is below the equilibrium rent,some allocation scheme must be used.The allocation methods include all of the following EXCEPT
A) charging the equilibrium rent.
B) refusing to rent to individuals on the basis of sex, race, or some other attribute.
C) requiring a payment, such as key money, in addition to the rent.
D) the creation of a black market.
E) increased search activity.

Question

Quizplus · Accepted Answer

If a rent ceiling is below the equilibrium rent, charging the equilibrium rent is not an option as it would violate the rent ceiling. However, the other options listed (refusing to rent based on discrimination, requiring additional payments, creating a black market, and increasing search activity) are all potential allocation methods that landlords or tenants may use in response to a rent ceiling.

If a Rent Ceiling Is Below the Equilibrium Rent,some Allocation