Question

The government established rent control in some cities to regulate the maximum price for housing. This action by the government to protect consumers is an example of what?

a. price floor
b. price ceiling
c. employee protection
d. opportunity cost

Answer 1

Rent control is an example of a price ceiling, where the government establishes a maximum price for housing to protect consumers. Cities like New York and San Francisco have implemented rent control to address housing affordability issues.

Step-by-step explanation:

Rent control, which is a price ceiling established by the government to regulate the maximum price for housing, is an example of a. price ceiling. Rent control laws work by limiting the amount that landlords can raise rents each year, with the aim of protecting consumers, particularly renters. Some cities, such as New York and San Francisco, have implemented rent control as a way to address housing affordability issues.