For analysing effective rent control in the housing sector:
A. The shortage of housing is small in the short run compared to the long run.
B. The shortage of housing is large in the short run compared to the long run.
C. The effective rent control exists when a government places an effective price floor on rent.
D. The effective rent control exists when a government places an effective price ceiling on rent.
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Perfect competition has come up 115 times in 7 exams since 2006.
This question is on Price ceilings, floors and subsidies, part of Perfect competition in Microeconomics.
What binding and non-binding price controls and per-unit subsidies do to quantity, shortage and cost.
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Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.