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 but does not affect the supply of rental accommodations.
C)has no effect on the distribution of income between tenants and landlords but does affect the supply of rental accommodations.
D)affects the distribution of income between tenants and landlords and also affects the availability of rental accommodations.
E)has much worse effects in the short run than in the long run.

Question

Quizplus · Accepted Answer

Legislating rent controls will have a direct impact on the distribution of income between tenants and landlords as the control sets a limit on the rent that landlords can charge, affecting the income earned by landlords. It will also have an impact on the availability of rental accommodations, as landlords may be disincentivized to provide rentals due to the cap on rent earnings. Thus, the overall effect is on the distribution of income and the availability of rental accommodations.

The Use of Legislated Rent Controls Typically