Answer: B. inefficient; the rent ceiling has no effect on the number of rooms rented
Explanation:
If the college strictly enforces the rent ceiling of $250 a month, the on-campus housing market is inefficient because the rent ceiling has no effect on the number of rooms rented.
An efficient market will see equilibrium supply meting equilibrium demand and this is not the case in this market because the supply seems to stay the same regardless of the demand.
This market is inefficient because supply does not react to the rent paid and is always the same. This is why a rent ceiling of $250 had no effect on the market in terms of supply. Efficient markets should see both supply and demand reacting to price so that a mutually beneficial equilibrium can be reached.
