2. Suppose that college students in your town persuaded the town council to enact a law setting the maximum price for rental housing at $400 per month. Will this help or hurt col- lege students who rent housing? In your answer, address how this price ceiling will affect (a) the quality of rental housing; (b) the amount of rental housing available; (c) the incentive of landlords to maintain their properties; (d) the amount of racial, gender, and other types of discrimination in the local rental housing market; (e) the ease with which students will be able to find housing; and, finally, (f) whether a black mar- ket for housing would develop. 5
2. Suppose that college students in your town persuaded the town council to enact a law setting the maximum price for rental housing at $400 per month. Will this help or hurt col- lege students who rent housing? In your answer, address how this price ceiling will affect (a) the quality of rental housing; (b) the amount of rental housing available; (c) the incentive of landlords to maintain their properties; (d) the amount of racial, gender, and other types of discrimination in the local rental housing market; (e) the ease with which students will be able to find housing; and, finally, (f) whether a black mar- ket for housing would develop. 5
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 4P
Related questions
Question
Transcribed Image Text:2. Suppose that college students in your town persuaded the
town council to enact a law setting the maximum price for
rental housing at $400 per month. Will this help or hurt col-
lege students who rent housing? In your answer, address how
this price ceiling will affect (a) the quality of rental housing;
(b) the amount of rental housing available; (c) the incentive
of landlords to maintain their properties; (d) the amount of
racial, gender, and other types of discrimination in the local
rental housing market; (e) the ease with which students will
be able to find housing; and, finally, (f) whether a black mar-
ket for housing would develop.
5
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