Rent controls force landlords to price property below the equilibrium price level. An effect of this is to create a shortage (excess demand) of rental property, as the quantity of rental property demanded is greater than the quantity supplied at that price. When legislation prevents landlords from charging market rents, what can happen in the long run as a result? Check all that apply. The quantity of available rental housing units falls. The future supply of rental housing units increases. An underground economy develops. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.

Rent controls force landlords to price property below the equilibrium price level. An effect of this is to create a shortage (excess demand) of rental property, as the quantity of rental property demanded is greater than the quantity supplied at that price. When legislation prevents landlords from charging market rents, what can happen in the long run as a result? Check all that apply. The quantity of available rental housing units falls. The future supply of rental housing units increases. An underground economy develops. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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