Rent controls

Question

Rent controls

Quizplus · Accepted Answer

Rent controls are an example of a price ceiling, as they set a maximum amount that landlords can charge for rent. This can lead to a shortage of rental units, as landlords may choose to convert apartments to other uses or not make repairs and renovations if they are unable to charge market rates. This can also destroy wealth by preventing the movement of apartments to higher-valued use, as landlords may see less incentive to invest in improving their properties or may choose to sell their properties due to reduced profitability.

Rent Controls