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Suppose There Are Two Cities That Have Rent Controlled Apartments

Question 2

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Suppose there are two cities that have rent controlled apartments. In one city (Dubai) all apartments are subject to rent control; in the other city (Abu Dhabi) one -half of the apartments are rent controlled. Which of the following is most likely to be true?


A) It will be easier to find an affordable apartment in Abu Dhabi, either a rent -controlled apartment or another apartment, at a reasonable price.
B) It will be easier to find an affordable apartment in Dubai since rents will be low across the board.
C) It will be difficult to find a rent -controlled apartment in Dubai or Abu Dhabi; rents for the Abu Dhabi apartments not subject to controls will be higher than they would be without rent control.
D) It will be impossible to rent an apartment in either city at any price.

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