Question

Imagine that a rent control of $600 a month is imposed for some of the apartments in the city where you choose to live. In 1 or 2 sentences, describe how this would increase your monthly personal income. Now suppose the rent control has also caused a housing shortage, and you cannot find an apartment to live in for $600. In 1 or 2 sentences, explain how this would affect your living conditions.

Answer 1

A rent control apartment is less expensive so you would have to spend less on housing costs and that means you get to keep more of your money.

If rent control causes a shortage of housing, your living standard will decrease; you will have to live somewhere you may not like just because there is not enough apartments available to choose from