Final answer:
The economic effects of rent control and minimum wage can be summarized as short-run positive and long-run negative, due to initial affordability benefits that eventually lead to reduced supply and employment prospects.
Step-by-step explanation:
The economic effects of rent control and minimum wage policies tend to vary in the short-run and long-run. In the Philippines' rental market, for instance, rent control presents a mix of immediate winners and losers. Short-run benefits are typically enjoyed by tenants who secure rent-controlled apartments and end up paying less than the market rate. However, these benefits are outstripped by the long-run negative consequences, such as landlords withdrawing from the rental market, reduced supply of rental units, and higher market prices for rentals. In fact, the net effect of rent control tends to be harmful to society as a whole.
Considering minimum wage, as another form of price control, it sets a price floor in labor markets. While establishing a minimum wage can help ensure workers earn a living wage in the short term, in the long run it could lead to reduced employment opportunities as firms may hire fewer workers due to higher labor costs.
Therefore, when evaluating these forms of price control policies, the answer seems to align with option a) Short-run: Positive, Long-run: Negative, signifying that while the immediate impact may seem beneficial, the enduring consequences can prove detrimental.