In New York City, many apartments have a maximum allowable rent that landlords can charge per unit. A rent-control scheme that sets the maximum allowable rent at a price below the equilibrium rental price would MOST likely be supported by:
A)people who wish to rent an apartment.
B)people who own rental apartments.
C)both renters and owners.
D)neither renters nor owners.

Question

Quizplus · Accepted Answer

Rent-control schemes that set the maximum allowable rent below the equilibrium rental price are likely to be supported by people who wish to rent an apartment because it helps them to save money on housing expenses. Owners of rental apartments, on the other hand, are likely to oppose such schemes because they limit their ability to charge higher rents and make a profit. Therefore, the rent-control scheme would not be supported by both renters and owners or neither.

In New York City, Many Apartments Have a Maximum Allowable