In 2 or 3 sentences, explain if rent control is a price floor or price ceiling. Then name one advantage and one disadvantage of

Question

IRISSAK [1]

2 years ago

7

In 2 or 3 sentences, explain if rent control is a price floor or price ceiling. Then name one advantage and one disadvantage of

rent control.

Business

2 answers:

Daniel [21] · Answer 1 · 2022-04-30T13:00:38+03:00

<span>Rent control is a price ceiling. The objective of controlling the prices of rent is usually to counteract the inequality of bargaining power between landlords and tenant, as part of a minimum set of rights to make the market fair. Advantage of rent control is limited rent increased. A disadvantage is tighter restrictions on roommates.

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Fofino [41] · Answer 2 · 2022-04-30T14:50:26+03:00

Answer:

Price Ceiling

Explanation:

A price ceiling is a normative by law maximum price that products and services can be sold in the market, rent control is a very interesting thing and example of that, rent control allows renters to afford housing in crowded cities where people coming to the city could inflate the real state market by over paying for housing, making it impossible for locals to actually afford a house in their own city. The disadvantage is that for real state owners, they can´t elevate the cost of rent.