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As you know, rent controls apply to about two-thirds of the private rental housing in New York City. As we have learned, economic theory suggests that prices below the market equilibrium established by
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As you know, rent controls apply to about two-thirds of the private rental housing in New York City. As we have learned, economic theory suggests that prices below the market equilibrium established by rent controls would_________-

User David Ten Hove
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Answer: CREATE SHORTAGES IN SUPPLY AS A RESULT OF INCREASE IN DEMAND.

Explanation:The law of economic Demand states that the quantity demanded will increase if the price of a commodity is reduced,considering other factors as constant.

The aim of manufacturing or real estate business is to have enough profit,if the profit is not forthcoming the money needed to build new homes will not be available,this will lead to shortage in Supply on new homes in New York as a result of increase in demand caused by reduced price.

User Grizzley
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