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Economics !!! Picture below. Thank you

Economics !!! Picture below. Thank you-example-1
User Anbuselvan
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1 Answer

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Answer:

Options 1 and 4

Explanation:

Options 1 and 4 are common long run outcomes during rent controls. In relation to option 4, landlords have less of an incentive to preserve property if they are not receiving fair market price for rent. A landlord is not going to invest additional money or bother with up-keep knowing they cannot adjust prices to cover costs. Option 1 occurs because cheaper rent results in higher quantity demanded. However, with rent controls, new housing is not being undertaken since it will not be profitable for entrepreneurs in the long run.

User Saasira
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