Suppose the market determined rent for apartments is $200 per month. The government intervenes and sets the rent control at $250 per month. What is the likely impact of this intervention on market of apartments?

Option 1 → Excess supply occurs when price is set above equilibrium, but here the price ceiling does not force the price to rise above $200$.

The market will continue to operate at equilibrium price $200$, so excess supply will not arise.

---

Option 2 → Excess demand occurs only when a price ceiling is binding, i.e., set below equilibrium.

Here, the ceiling is $250$, which is above $200$, so it is non-binding and does not create excess demand.

---

Option 3 → The equilibrium price $200$ is determined by demand and supply.

A non-binding price ceiling does not influence this equilibrium, so the price will not rise due to this intervention.

---

Option 4 → The price ceiling is $250$, which is greater than equilibrium price $200$.

Thus, it is non-binding and has no effect on price or quantity.

---

A price ceiling affects the market only when it is set below equilibrium.

Since $250 > 200$, the market continues at $200$ without any distortion.

---

Hence, Option 4: There will be no impact of this intervention on the market of apartments is correct