Which of the following would be true in a city with rent-controlled apartments?
A) Homelessness is reduced.
B) Landlords face a greater incentive to provide housing.
C) Apartments are of higher quality.
D) Rents for those fortunate enough to find an apartment are lower than rents in nearby cities that lack rent controls.
E) It is more difficult for the landlord to find a tenant willing to rent the apartment.

Question

Quizplus · Accepted Answer

Rent-controlled apartments are designed to limit the amount of rent a landlord can charge tenants. As a result, rents for those lucky enough to find such apartments will be lower than in nearby cities that lack rent control. However, because of the decreased incentive to provide housing, apartment quality may not be higher, and it may be more difficult for landlords to find tenants, but it is unlikely to reduce homelessness.

Which of the Following Would Be True in a City