Suppose the government imposes rent control (a price ceiling) below the equilibrium price for rental housing. Which of the following could result?

Question

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A) Tenants may be willing to pay more than the rent-controlled price, but are legally prevented from doing so, which may incentivize them to break the law.
B) Landlords may have less incentive to maintain or upgrade their properties if they are unable to charge market rates for rent, leading to a decline in quality.
C) If the rent-controlled price is set below the equilibrium price, landlords may not be willing to supply enough rental housing, leading to shortages.

Suppose the Government Imposes Rent Control (A Price Ceiling) Below