If the supply curve for housing has the usual positive slope, rent controls are likely to
A)increase the quantity of housing.
B)improve the quality of housing.
C)aggravate the housing shortage.
D)help low-income families find suitable housing.
E)increase the demand for housing.

Question

Quizplus · Accepted Answer

Rent controls set a price ceiling on rents, which can lead to a decrease in the supply of rental housing units. Landlords may choose to convert rental units into condominiums or simply not invest in maintenance and upgrades. This can exacerbate the shortage of affordable housing, as well as potentially decrease the quality of existing housing options. Rent controls may benefit low-income families in the short-term by providing cheaper housing options, but in the long-term, it could make finding suitable and affordable housing even more difficult. The supply curve for housing has a positive slope, so implementing rent controls would not increase the quantity of housing, and it would not necessarily increase the demand for housing.

If the Supply Curve for Housing Has the Usual Positive