Question

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments because the quantity of apartments demanded is greater than the quantity supplied at the regulated price.

When cities prevent landlords from charging market rents, which of the following are common long-run outcomes?
a. Black markets develop.
b. The quality of available rental housing units falls.
c. Landlords earn lower profits renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
d. Nonprice methods of rationing emerge.

Answer 1

Answer: b. The quality of available rental housing units falls.

d. Nonprice methods of rationing emerge.

Step-by-step explanation:

Rent control is simply defined as a government program which involves placing a limit on the fee that can be charged by a landlord for the lease if his or her house. Rent control are usually put in place to make the cost of living affordable to the people especially the low income earners.

Based on the information given in the question, the common long-run outcomes include the quality of available rental housing units falls and also there'll be emergence of non price methods of rationing.