in-a-real-world-scenario-where-the-government-imposes-a-price-ceiling-on-apartme

Question

In a real-world scenario where the government imposes a price ceiling on apartment rentals below the equilibrium price, how would this affect consumer and producer surplus?

Accepted Answer

Consumer surplus may increase initially, but producer surplus decreases significantly.

Answer

Consumer surplus decreases, while producer surplus increases.

Answer

Both consumer and producer surplus increase.

Answer

Both consumer and producer surplus remain unchanged.