ent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied. When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quality of rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Black markets develop. The quantity of available rental housing units falls.
ent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied. When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quality of rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Black markets develop. The quantity of available rental housing units falls.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
None
Transcribed Image Text:ent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage
excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied.
When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that
apply.
The quality of rental housing units falls.
Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental
units.
Black markets develop.
The quantity of available rental housing units falls.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education