Question

If population increases in a city with effective rent controls (and nothing else changes), which of the following describes what will happen in the market for rental housing?a. An increase in the number of rental housing units available, but no change in rentb. An increase in quantity supplied and quantity demandedc. An increase in supply, but no change in quantity demandedd. An increase in demand, but no change in quantity supplied

Answer 1

Answer:

An increase in quantity supplied and quantity demanded.

Explanation:

If population increases in a city with effective rent controls (and nothing else changes) in the market for rental housing there will be an increase in quantity supplied and quantity demanded.

As with the rising population the demand for rental housing increase and with the rent control rent remains same, but the supply of rental housing units increases.Therefore, there will be an increase in the quantity supplied and demanded.