If the government imposes a ceiling price on apartment rents, we would expect to observe all of the following except one.Which is the exception?

Question

Quizplus · Accepted Answer

When the government imposes ceiling prices on apartment rents, it creates a price control that limits the amount landlords can charge for rent. Since the rent is capped at a certain amount, landlords may find it more difficult to cover their costs, which could result in lower maintenance of existing apartments, conversion of some apartment complexes to condos, and a shortage of available apartments, as landlords may choose to sell or convert their properties rather than rent them out. While long waiting lists for apartment seekers are possible, we would not expect to see an increase in the number of new apartment complexes being built, as the price control may make it less profitable for developers to invest in new construction.

If the Government Imposes a Ceiling Price on Apartment Rents