Rent controls are
A) when rents are set above the market clearing level to aid landlords.
B) used to provide incentives to contractors to build new apartments.
C) used to generate revenue for the local government.
D) when rents are set below the market clearing level.

Question

Quizplus · Accepted Answer

Rent controls are when rents are set below the market clearing level to provide affordable housing for tenants. This is done by limiting the amount by which landlords can increase rents, which can help prevent price gouging and ensure that low-income tenants have access to stable and affordable housing.

Rent Controls Are