Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium.As a result,
A) landlords have a difficult time finding tenants.
B) prospective tenants have a difficult time finding available apartments.
C) there is a surplus of apartments.
D) All of the above.

Question

Quizplus · Accepted Answer

When rentals are set below equilibrium, there will be many prospective tenants who want to rent the limited number of apartments available at that rate. This ultimately leads to a shortage of apartments, making it difficult for prospective tenants to find available apartments. This is the main consequence of rent control policies. While landlords may not make as much profit as they would have if the market rate were the norm, there is still demand for affordable housing in areas where rent control is in effect. Thus, landlords may still be able to fill their available units, albeit with reduced income.

Municipalities That Have Adopted the Policy of "Rent Control" Typically