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. - Efficient use of housing space results. - Nonprice methods of rationing emerge. - The future supply of rental housing units increases. - The quantity of available rental housing units falls.
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. - Efficient use of housing space results. - Nonprice methods of rationing emerge. - The future supply of rental housing units increases. - The quantity of available rental housing units falls.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 10PA
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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.
- Efficient use of housing space results.
- Nonprice methods of rationing emerge.
- The future supply of rental housing units increases.
- The quantity of available rental housing units falls.
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