In the city of Marketburg, the government imposes a price ceiling on the rent for apartments, restricting it below the equilibrium price. If the quantity demanded exceeds the quantity supplied in the apartment rental market, what is the most likely outcome?
The most likely outcome in this situation is a shortage of apartments. Since the price ceiling is set below the equilibrium price, it creates a situation where the quantity demanded exceeds the quantity supplied. This means that there are more people looking for apartments at the restricted price than there are available apartments.
As a result, potential renters may face difficulties in finding and securing an apartment. Landlords may also face challenges in finding suitable tenants, as they can't fully benefit from the market price. The shortage may lead to increased competition among renters, potentially resulting in higher non-monetary costs such as longer waiting times or lower-quality apartments being rented.