An example of a binding price ceiling is: a. a minimum wage law that is set above the equilibrium price. b. a minimum wage law that is set below the equilibrium price. c. rent control that is set above the equilibrium price. d. a black market that sets the price below the equilibrium price. e. rent control that is set below the equilibrium price.

e. rent control that is set below the equilibrium price.

Explanation:

The law binds, ties, it forces the market to make trnasaction on this price.

The owners of the houses and building for rent would rent at a higher price than the stablished by the goverment.

This control force them to ggive a lower rent than they think is the right one for granting the right of use of his property.

As the housing market demand is quite inelastic and people need a place to live they cannot respond to price increase with a lower house demand. At most, they can move to low-income zone when the rent is more affordable.

The government is doing this control with the idea of ensure the families well-being to don't pay exorbitant prices in the housing market