A rent-control scheme that sets the maximum allowable rent at a price below the equilibrium rental price would MOST likely be supported by:
A)people who wish to rent an apartment.
B)people who own rental apartments.
C)both renters and owners.
D)neither renters nor owners.

Question

Quizplus · Accepted Answer

Renters would benefit from a rent-control scheme that sets the maximum allowable rent below the equilibrium rental price, as they would be able to rent an apartment for a lower price than they would otherwise have to pay. Owners, on the other hand, would not benefit from such a scheme, as they would be forced to charge lower rents than they would otherwise be able to charge, reducing their potential profits.

A Rent-Control Scheme That Sets the Maximum Allowable Rent at a Price