The city of New Raven has decided to impose rent controls on office buildings in the city. As a result of​ this, the new rent

Question

Part 2
A.
floor is equal to the equilibrium rent and there will be a surplus of rental offices.
B.
floor is lower than the equilibrium rent and there is no shortage of rental offices.
C.
celing is lower than the equilibrium rent and there will be a shortage of rental offices.
D.
celing is higher than the equilibrium rent and there will be a surplus of rental offices.

Answer 1

C. ceiling is lower than the equilibrium rent and there will be a shortage of rental offices.