3. Effects of rent control Part 2 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 quantity of available rental housing units falls. - Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. - Efficient use of housing space results. - The quality of rental housing units falls.

3. Effects of rent control Part 2 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 quantity of available rental housing units falls. - Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. - Efficient use of housing space results. - The quality of rental housing units falls.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 6.12P

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3. Effects of rent control Part 2

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 quantity of available rental housing units falls.

- Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.

- Efficient use of housing space results.

- The quality of rental housing units falls.

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