Asked by
Brooke Giessen
on Oct 26, 2024
Verified
A rent-control scheme that sets the maximum allowable rent at a price below the equilibrium rental price would MOST likely be supported by:
A) people who wish to rent an apartment.
B) people who own rental apartments.
C) both renters and owners.
D) neither renters nor owners.
Rent-Control Scheme
A rent-control scheme is a government policy that sets a maximum price that can be charged for rental housing, aiming to make housing more affordable.
Equilibrium Rental Price
The price at which the quantity of rental properties supplied equals the quantity demanded.
- Obtain insight into how the imposition of price ceilings and floors affects the state of equilibrium in markets.
- Evaluate the ethical and political motivations behind the implementation of price controls by the government.
Verified Answer
KA
Learning Objectives
- Obtain insight into how the imposition of price ceilings and floors affects the state of equilibrium in markets.
- Evaluate the ethical and political motivations behind the implementation of price controls by the government.