Asked by Akadiri Olalekan on Jun 05, 2024
Verified
Rent control is a form of price _____ and is responsible for housing _____.
A) floor,shortages
B) floor,surpluses
C) ceiling,shortages
D) ceiling,surpluses
Rent Control
Government policies or laws that limit the rent landlords can charge for housing, intended to make housing affordable.
Price Ceiling
A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising above a certain level.
Housing
Structures and buildings that are used as homes, providing shelter and living spaces for individuals and families.
- Explain the effects of state initiatives such as rent caps, minimum salary regulations, interest rate limits, and price support mechanisms on the market.
- Comprehend the impact of price ceilings on housing markets and housing supply.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
C
Explanation :
Rent control establishes a maximum rent that landlords can charge for their properties, which creates a ceiling price. This can result in housing shortages because landlords have less incentive to maintain and rent out their properties at a lower price. Therefore, there is a decrease in the available housing supply.
Learning Objectives
- Explain the effects of state initiatives such as rent caps, minimum salary regulations, interest rate limits, and price support mechanisms on the market.
- Comprehend the impact of price ceilings on housing markets and housing supply.