Rent controls and controls on other prices often aggravate the very problem they are intended to solve.

Question

Quizplus · Accepted Answer

Rent controls and other price controls can create shortages and reduce quality as suppliers have less incentive to produce or improve their products/services. This can lead to a lack of available units for rent or a decrease in the quality of rental units available. It may also create a black market for rental units, where tenants are willing to pay above the legally mandated price for a desirable unit. Additionally, landlords may become less willing to maintain or invest in their rental units if they are not able to charge market rates for their properties.

Rent Controls and Controls on Other Prices Often Aggravate the Very