Under rent control, bribery is used to:
A) allocate housing to the most deserving tenants.
B) make the total price of a rental property (including the bribe) less than the market price that would prevail without rent controls.
C) make the total price of a rental property (including the bribe) closer to the market price that would prevail without rent controls.
D) allocate the housing to the poorest individuals in the market.

Question

Quizplus · Accepted Answer

Under rent control, the maximum price that landlords can charge for rental properties is below the market price. Bribery is used to make the total price of a rental property, including the bribe, closer to the market price that would prevail without rent controls. This allows landlords to bypass the rent control regulations and receive a fair price for their property while tenants can secure housing at a relatively lower price than the market rate.

Under Rent Control, Bribery Is Used To