. Effects of rent control 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? Check all that apply. The future supply of rental housing units increases. Black markets develop
. Effects of rent control 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? Check all that apply. The future supply of rental housing units increases. Black markets develop
Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter7: Consumers, Producers, And The Efficiency Of Markets
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3. Effects of rent control
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? Check all that apply.
The future supply of rental housing units increases.
Black markets develop.
Efficient use of housing space results.
Nonprice methods of rationing emerge.
Expert Solution
Step 1
Rent control is a government policy that limits how much a landlord can charge for renting a residence or renewing an existing lease. Municipalities frequently enact rent control legislation, and the details vary greatly. All are aimed at keeping living costs low for low-income residents.
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