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27 February, 21:13

Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate? a. a decrease in the quantity of rental housing demanded b. a surplus of rental housing c. an increase in the quantity of rental housing supplied d. a black market in rental housing

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  1. 27 February, 21:23
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    The answer is d. a black market in rental housing

    Explanation:

    There is likely to be deficit of rental housing meaning Demand > Supply. Rental housing is likely to be sold in black market at a higher price.
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