The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is $1300 per month, and the government proposes a rent ceiling of $1000 per month. Which of the following statements are false? (Select all that apply.) The law would make rental units more expensive. O b. The rent-control law will have no effect on the market. O c. The government could alleviate the issues through a subsidies. O d. The government could alleviate the issues by taxing builders. O e There will be an excess supply of housing. O f. Due to the low rental rates, landlords are less likely to invest in rental units. O g. The law may result in an increase in the cost of non-rental housing. O h. There will be a shortage of housing. As a result of the rent-control law, we would expect to see new low-cost rental units being built. Oj. We would except to see an increase in the supply of non-rental housing units.
The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is $1300 per month, and the government proposes a rent ceiling of $1000 per month. Which of the following statements are false? (Select all that apply.) The law would make rental units more expensive. O b. The rent-control law will have no effect on the market. O c. The government could alleviate the issues through a subsidies. O d. The government could alleviate the issues by taxing builders. O e There will be an excess supply of housing. O f. Due to the low rental rates, landlords are less likely to invest in rental units. O g. The law may result in an increase in the cost of non-rental housing. O h. There will be a shortage of housing. As a result of the rent-control law, we would expect to see new low-cost rental units being built. Oj. We would except to see an increase in the supply of non-rental housing units.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Supply: Applications And Extensions
Section: Chapter Questions
Problem 2CQ
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Transcribed Image Text:The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is
$1300 per month, and the government proposes a rent ceiling of $1000 per month.
Which of the following statements are false? (Select all that apply.)
O a.
The law would make rental units more expensive.
Ob.
The rent-control law will have no effect on the market.
O c. The government could alleviate the issues through a subsidies.
O d. The government could alleviate the issues by taxing builders.
O e. There will be an excess supply of housing.
O f. Due to the low rental rates, landlords are less likely to invest in rental units.
O g. The law may result in an increase in the cost of non-rental housing.
O h. There will be a shortage of housing.
O i As a result of the rent-control law, we would expect to see new low-cost rental units being built.
O j. We would except to see an increase in the supply of non-rental housing units.
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