Question

Rent controls can cause a. ​a decline in the quality of housing available for rent. b. ​the development of a black market to allocate apartments to renters. c. ​longer search times for renters attempting to locate an apartment. d. ​all of these are possible results of rent controls.

Answer 1

Answer:

d. ​all of these are possible results of rent controls.

Explanation:

Rent control is when the price of rent is set below the equilibrium price by the government or an agency of the government.

When rent control is done, supply falls as most suppliers would stop selling houses or leave the market. This can lead to the development of a black market to allocate apartments to renters or a longer search times for renters attempting to locate an apartment.

Alternatively, suppliers might reduce the quality of houses so as to reduce cost of production and maximise profit.

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