Suppose there are two cities that have rent controlled apartments.In one city (Albany)all apartments are subject to rent control; in the other city (Halftrack)one-half of the apartments are rent controlled.Which of the following is most likely to be true?
A)It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control.
B)It will be easier to find an affordable apartment in Albany since rents will be low across the board.
C)It will be easier to find an affordable apartment in Halftrack,either a rent-controlled apartment or another apartment,at a reasonable price.
D)It will be impossible to rent an apartment in either city at any price.

Question

Quizplus · Accepted Answer

Rent control typically leads to a shortage of available apartments because it caps how much landlords can charge, making it less profitable for them to rent out apartments. This would make it difficult to find a rent-controlled apartment in both cities. In Halftrack, where only half the apartments are rent-controlled, the non-controlled apartments would likely have higher rents due to increased demand from those unable to find or qualify for rent-controlled housing, as well as the reduced overall supply.

Suppose There Are Two Cities That Have Rent Controlled Apartments