When determination of rent is left to the market,
A)that rent price is almost entirely determined by the supply side.
B)that price can settle at politically unpopular levels.
C)land is fairly distributed among the members of society.
D)the supply of land will be perfectly elastic.

Question

Quizplus · Accepted Answer

When rent determination is left to the market, the price can settle at politically unpopular levels, meaning that it may become too expensive for some members of society to afford. This is especially true when demand is high and supply is low, as landlords are able to charge exorbitant prices for their property. While supply does play a role in determining rent prices, it is not the sole determining factor. In addition, the distribution of land is not necessarily affected by the market determination of rent. Finally, the supply of land may not be perfectly elastic, as there may be limits to the amount of available land in a particular area.

When Determination of Rent Is Left to the Market