Rent ceilings are difficult to abolish because
A) they create such large profits for landlords.
B) current renters offer political support for ceilings.
C) the government doesn't like to give up the tax revenues associated with ceilings.
D) they result in an efficient use of resources.
E) landlords lobby to keep them in place.

Question

Quizplus · Accepted Answer

Rent ceilings, when set below the equilibrium price, create a shortage of housing and benefit those who are lucky enough to find rental housing at the controlled price. These beneficiaries, typically current renters, have a vested interest in maintaining the status quo because it keeps their rent lower than it would be in an uncontrolled market. This group may offer political support for the continuation of rent ceilings, making them difficult to abolish.

Rent Ceilings Are Difficult to Abolish Because