Recall the Application about the mismatch of rent-controlled apartments and their tenants to answer the following question(s).
-Recall the Application.Under rent control,the government sets a maximum price for housing,decreasing the quantity supplied and the total value of the market.Rent control and other maximum prices cause ________ and possibly ________.

Question

Quizplus · Accepted Answer

Rent control and other maximum prices cause inefficiency in the market as the maximum price may not cover the cost of production or maintenance of the housing, leading to a decrease in the quantity supplied. This can also lead to mismatches between the tenants and the apartments as landlords may not be incentivized to maintain or improve the quality of the housing since they cannot increase the rent.

Recall the Application About the Mismatch of Rent-Controlled Apartments and Their