When "rent controls" result in a shortage of housing,landlords
A) use criteria other than price to allocate housing.
B) lower the price to allocate the housing.
C) attempt to attract renters.
D) None of the above.

Question

Quizplus · Accepted Answer

When rent controls result in a shortage of housing, landlords may choose to use criteria other than price to allocate housing, such as a lottery system, first-come-first-serve, or based on personal relationships. This is because they cannot increase the rent to address the shortage, so they need to find other ways to decide who gets the available units. Lowering the price is not an option because they are not allowed to charge more than the rent control limit. Attempting to attract renters may not work in a market with a housing shortage, as renters may have limited options and are more likely to settle for whatever housing is available.

When "Rent Controls" Result in a Shortage of Housing,landlords