-Instituting a rent control program will most likely lead to
A) a shortage of rental units.
B) overly elaborate and expensive construction.
C) an efficient allocation of existing units among consumers.
D) an excess quantity supplied of rental units.

Question

-Instituting a rent control program will most likely lead to
A) a shortage of rental units. 
B) overly elaborate and expensive construction. 
C) an efficient allocation of existing units among consumers. 
D) an excess quantity supplied of rental units.

Quizplus · Accepted Answer

Rent control programs typically set a maximum price landlords can charge for rent, which often leads to a shortage of rental units because the price is set below the market equilibrium, reducing the incentive for landlords to offer rental properties and for developers to build new ones.

-Instituting a Rent Control Program Will Most Likely Lead to