Final answer:
Both supporters and opponents of rent control are correct in some respects; supporters claim it helps keep housing affordable, while opponents say it leads to a shortage of rental housing. This dichotomy reflects the complexity of housing policy and the economic trade-offs of implementing price ceilings in the rental market.
Step-by-step explanation:
When considering the debate over the policy of rent control, it is important to understand that both supporters and opponents have valid points. Rent control is a type of price ceiling that limits how much landlords can increase rents, aimed at making housing more affordable for renters. Its supporters argue that it helps to keep rents more affordable, whereas opponents argue that it can create a shortage of available rental units.
Supporters believe that without rent control, landlords may escalate rents to levels that push tenants out of their homes, particularly in popular urban areas where demand for rental housing is high. On the other hand, opponents of rent control argue that by limiting potential revenue, rent control discourages property owners from investing in rental properties or maintaining them, leading to a decline in the quality and quantity of available housing. This can lead to fewer rental units on the market and consequently, those who cannot find rental housing at regulated prices may suffer. Furthermore, empirical evidence suggests that landlords might choose to convert rental units into condominiums or other forms of housing not subject to rent controls, exacerbating the housing shortage.
Thus, both supporters and opponents offer crucial insights into the effects of rent control. As such, the answer to the debate would be (D) Both. This reflects the complexity of housing policy and the trade-offs that come with price controls such as rent control.