A rent control is a regulation that:
A) ensures apartments being available for rent.
B) controls rents at constant levels.
C) upholds rents to above equilibrium levels.
D) prevents rents from rising to equilibrium levels.

Question

Quizplus · Accepted Answer

Rent control prevents rents from rising to equilibrium levels by imposing a maximum price that landlords can charge for rent, which is often set below the market rate. This can create shortages of rental units, as landlords have less incentive to supply rental housing when they can't charge market prices.

A Rent Control Is a Regulation That