Business, 29.01.2021 17:00 Manuel2019
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments because the quantity of apartments demanded is greater than the quantity supplied at the regulated price.
When cities prevent landlords from charging market rents, which of the following are common long-run outcomes?
a. Black markets develop.
b. The quality of available rental housing units falls.
c. Landlords earn lower profits renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
d. Nonprice methods of rationing emerge.
Answers: 3
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Business, 22.06.2019 13:00
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Rent controls force landlords to price apartments below the equilibrium price level. An immediate ef...
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