Rent control laws may lead to which of the following unintended effects?

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Quizplus · Accepted Answer

Rent control laws can lead to all of the above unintended effects. Under-the-table payments may occur as landlords try to recoup lost profits. Increased forced commuting may happen as tenants are unwilling to move to more expensive neighborhoods, leading to longer commutes to work. Higher search costs may occur as tenants compete for a limited supply of rental housing. Lost profit incentives may happen as landlords do not have the same financial incentives to increase the supply of rental housing.

Rent Control Laws May Lead to Which of the Following