Figure 6-7

-Refer to Figure 6-7.Which panel(s)best represent(s)a non-binding rent control in the long run?

Question

Figure 6-7
 
-Refer to Figure 6-7.Which panel(s)best represent(s)a non-binding rent control in the long run?

Quizplus · Accepted Answer

Neither panel shows a non-binding rent control in the long run. Both panels show a situation where the rent control is binding and leads to a shortage of rental units in the market. The only difference between the panels is the initial market equilibrium before the rent control is implemented.

Figure 6-7 -Refer to Figure 6-7.Which Panel(s)best Represent(s)a Non-Binding Rent Control in Non-Binding