Read the passage carefully and answer the questions based on the passage:

Concept of Price Ceiling

It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems. 

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?

There will be no impact of this intervention on the market of apartments

The correct answer is Option (4) → There will be no impact of this intervention on the market of apartments

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

Here,

• The market rent = ₹200 per month.

• The government-set ceiling = ₹250 per month.

Since ₹250 is above the market-determined rent, the ceiling is non-binding — landlords can still charge ₹200 without violating the law. Hence, the market remains unaffected, and no excess demand or supply arises.