Which of the following statements is TRUE? I. Rent controls prevent apartments from being allocated to people who value them the most. II. With a system of rent controls, landlords are more likely to make needed repairs to their properties as a way of attracting renters. III. Although inefficient, rent controls are the best way to help the poor afford housing.

Question

Quizplus · Accepted Answer

Statement I is true as rent controls often lead to apartment scarcity and make it more difficult for those willing to pay the market rate to find housing. Statement II is false as landlords are less likely to make repairs if they cannot charge a higher rent to cover the costs. Statement III is false as there are more efficient ways to help the poor afford housing, such as housing vouchers or subsidies.

Which of the Following Statements Is TRUE? I