Rent controls in New York City do NOT cause:
A)inefficiently low-quality apartments.
B)wasted resources resulting from the opportunity cost of time associated with trying to find an apartment.
C)black markets.
D)an increase in the quantity supplied of rent-controlled apartments.

Question

Quizplus · Accepted Answer

Rent controls in New York City do cause inefficiently low-quality apartments, wasted resources resulting from the opportunity cost of time associated with trying to find an apartment, and black markets. However, they do not cause an increase in the quantity supplied of rent-controlled apartments. In fact, rent controls create a disincentive for landlords to supply more apartments, as they cannot charge market rates and may not be able to cover their costs or make a profit. This can result in a shortage of available apartments for renters.

Rent Controls in New York City Do NOT Cause