Monday, July 27, 2009

Effective rent controls are which of the following?

A. are examples of price floors


B. cause the quantity of rental occupied housing demanded to exceed the quantity supplied


C. create a greater amount of higher quality housing to be made available to renters.


D. create a surplus of rental occupied housing

Effective rent controls are which of the following?
C
Reply:B





With rent control people will not want to rent out as many apartmetns as with free market because their return would not be as great, but due to lower price the demand will increase.





So there will be more demand than the supply.
Reply:Answer is A. Himself told me so %26amp; he's a MSW so he must know.


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