The government imposes a maximum price on apartments that is below the equilibrium price. You accurately predict that

A) the law will have no economic impact.
B) the law will create a surplus of apartments.
C) renters will find that landlords start offering to furnish the apartments.
D) landlords are less likely to do routine maintenance work in the apartments.

Maximum Price

A price ceiling set by a governing body, above which a particular good or service cannot legally be sold.

Economic Impact

The effect of an event, policy, or market change on the economy, which can include impacts on employment, income levels, and economic growth.

Routine Maintenance

Routine maintenance involves regular and basic upkeep to maintain equipment, systems, or facilities in operational condition, preventing major failures or breakdowns.