How do price ceilings in the rental housing market affect tenants? a. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. b. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling. c. Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing d. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run.
How do price ceilings in the rental housing market affect tenants? a. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. b. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling. c. Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing d. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive.
b. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling .
c. Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing
d. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run.
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