Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent.With this plan
A) the quantity of apartments demanded will increase.
B) the quantity of apartments supplied will increase.
C) young people and poor people will have an easier time finding apartments.
D) the deadweight loss in Chicago's apartment market will be eliminated.
E) there will be a surplus of apartments offered for rent.

Question

Quizplus · Accepted Answer

Rent control below the equilibrium rent will lead to an increase in the quantity of apartments demanded because the lower price makes renting more attractive to consumers.

Suppose the City of Chicago Imposes a Rent Control Program