Which of the following would not be expected effects of a binding maximum price control on downtown apartments?
A)there would be a shortage of apartments.
B)rent would be due in advance.
C)new developments downtown.
D)deposits would increase.

Question

Quizplus · Accepted Answer

A binding maximum price control on downtown apartments would likely lead to a shortage of apartments and potentially an increase in deposits, as landlords would try to offset the effects of the price control. Rent being due in advance is not necessarily a direct effect of the price control, but rather a policy that could be implemented by landlords as a way to mitigate risk. However, new developments downtown would be unlikely to occur under a binding price control, as developers would have less incentive to invest in new construction under such conditions.

Which of the Following Would Not Be Expected Effects of a Binding