An effective rent control will
A) lead to a surplus of housing units.
B) keep rents below the competitive market level.
C) keep rents above the competitive market level.
D) be set at the price where quantity supplied equals quantity demanded.

Question

Quizplus · Accepted Answer

Rent control is designed to keep rents below the competitive market level, making housing more affordable for low-income families. It is not designed to create a surplus of housing units or keep rents above the competitive market level. The ideal rent control policy would keep rents at a level that is fair to tenants while still allowing landlords to earn a reasonable return on their investment. This would be achieved by setting rent control at the price point where quantity supplied equals quantity demanded.

An Effective Rent Control Will