In order to control the rising price of housing,the county council enacts rent controls.This mandated price is below the equilibrium price.Consequently,a shortage in the supply of housing may result.

Question

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When the county council enacts rent controls below the equilibrium price, it causes the price landlords can charge to be lower than what the market would naturally dictate. This leads to a situation where the quantity of housing demanded exceeds the quantity supplied, creating a shortage.

In Order to Control the Rising Price of Housing,the County