Final answer:
Implied warranties of fitness and marketability ensure condos and co-ops meet certain standards for sale. Price ceilings can lead to lower quality housing and less availability. Opportunity cost is a key economic concept illustrating trade-offs in choices.
Step-by-step explanation:
The Condo and Coop Acts are legislative frameworks that include provisions to ensure that when someone buys a condo or co-op, the property is suitable for sale, as implied by the warranties of fitness and marketability. These warranties suggest that property, in this context, must meet certain standards and be sellable. If property is owned by individuals or firms, it grants the right to enter into contracts that relate to this property.
In contrast, when discussing housing economics, particularly in reference to price ceilings, the implication is that these regulations might help some renters by making housing more affordable, however, they can also lead to unintended consequences such as lower quality housing and loss of rental availability as landlords may convert apartments to co-ops and condos to sidestep these restrictions.
Additionally, when price ceilings are imposed, landlords may reduce their spending on maintenance, affecting the essentials like heating, cooling, hot water, and lighting. This illustrates an opportunity cost which is a fundamental concept in economics, where obtaining one thing usually comes at the expense of forgoing another.