We discussed rent control in class this semester. When there is rent control in the market for housing, we expect the supply of rental housing to be more elastic in the long run than in the short run. Which of the following is true based on the above statement about rent control and the supply of rental housing? a. In the short run, there will be a large deadweight loss from rent control. However, the deadweight loss becomes smaller in the long run. b. The supply is inelastic in the short run because it is difficult to build lots of new housing units in a small amount of time. c. Rent control is never binding. d. The number of rental housing decreases in the short run but increases in the long run. e. None of the above.
We discussed rent control in class this semester. When there is rent control in the market for housing, we expect the supply of rental housing to be more elastic in the long run than in the short run. Which of the following is true based on the above statement about rent control and the supply of rental housing? a. In the short run, there will be a large deadweight loss from rent control. However, the deadweight loss becomes smaller in the long run. b. The supply is inelastic in the short run because it is difficult to build lots of new housing units in a small amount of time. c. Rent control is never binding. d. The number of rental housing decreases in the short run but increases in the long run. e. None of the above.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 27CTQ: During a discussion several year; ago on building a pipeline to Alaska to carry natural gas, the...
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Transcribed Image Text:We discussed rent control in class this semester. When there is rent control in the market for housing, we expect the supply of
rental housing to be more elastic in the long run than in the short run. Which of the following is true based on the above statement
about rent control and the supply of rental housing?
a. In the short run, there will be a large deadweight loss from rent control. However, the deadweight loss becomes smaller in
the long run.
b. The supply is inelastic in the short run because it is difficult to build lots of new housing units in a small amount of time.
c. Rent control is never binding.
d. The number of rental housing decreases in the short run but increases in the long run.
e. None of the above.
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