Rent control in New York City serves as a price ceiling example, aimed at resolving housing affordability but may lead to negative market distortions. Hence the correct option is A
An example of price controls can be seen in rent control policies, which are types of price ceilings. Rent control is a regulation that imposes a maximum amount on the rent a landlord may charge tenants, typically in urban areas to ensure affordability for residents. For instance, New York City has a long history of rent control to address the problem of housing affordability.
The government intended to fix the issue of scarce affordable housing and prevent inflation in rental markets from displacing long-time residents. However, rent controls often lead to decreased investment in housing, reduced quality and quantity of available rental units, and can exacerbate the very problems they aim to solve by distorting the market.
Whether I support this price control policy is subject to the context and outcomes it produces. Rent control can provide short-term benefits to existing tenants but might lead to negative long-term consequences for the housing market as a whole.
Hence the correct option is A