Asked by
Mizzael Agapay
on Oct 26, 2024
Verified
(Figure: Rent Controls) Use Figure: Rent Controls.Suppose that rent controls are imposed.If the government wanted a rent control ceiling to be effective immediately,what is one possible price to set?
A) Rent3
B) Rent4
C) Rent1
D) Rent2
Rent Controls
Government-imposed maximum rents to cap how much landlords can charge tenants, intended to make housing more affordable.
Rent Control Ceiling
A legal maximum price that can be charged for rental housing, intended to keep housing affordable for tenants.
Effective Immediately
A term indicating that something is to be applied or become operative from the moment it is declared.
- Gain an understanding of the mechanisms behind price controls such as price ceilings and price floors.
- Investigate the repercussions of official interventions in the marketplace, such as the application of price ceilings below the equilibrium price level.
Verified Answer
AP
Learning Objectives
- Gain an understanding of the mechanisms behind price controls such as price ceilings and price floors.
- Investigate the repercussions of official interventions in the marketplace, such as the application of price ceilings below the equilibrium price level.