The use of legislated rent controls typically
A)has no effect on the distribution of income between tenants and landlords or on the availability of rental accommodations.
B)affects the distribution of income between tenants and landlords and also affects the availability of rental accommodations.
C)affects the distribution of income between tenants and landlords but does not affect the supply of rental accommodations.
D)has much worse effects in the short run than in the long run.
E)has no effect on the distribution of income between tenants and landlords but does affect the supply of rental accommodations.

Question

Quizplus · Accepted Answer

Legislating rent controls affects the distribution of income between tenants and landlords as it can limit the amount of rent landlords are able to charge, potentially reducing their income. It also affects the availability of rental accommodations as landlords may choose to stop renting out properties or reduce the number of available rentals due to decreased profits from rent control. Therefore, option B is the best choice.

The Use of Legislated Rent Controls Typically