In Nigeria, the government can reduce the cost of accommodation by fixing the rent

  • A at the prevailing rate
  • B at the equilibrium price
  • C above the equilibrium price
  • D below the equilibrium price

The correct answer is D. below the equilibrium price

If the government fixes the rent below the equilibrium price in Nigeria to reduce the cost of accommodation, it would result in a price control policy known as a rent control policy.

Rent control is a form of price ceiling where the government sets a maximum price that landlords can charge for rent.

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