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.
Efficient use of housing space results.
Nonprice methods of rationing emerge.
The quantity of available rental housing units falls.
Answers: 2
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Rent controls force landlords to price apartments below the equilibrium price level. An immediate ef...
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