One strategy I might use to be elected mayor of a university town is to place a binding price ceiling on rent for student apartments.What will happen if I get elected and am able to pass such a law?
A) The price ceiling will increase the number of apartments available for rent.
B) The price ceiling will cause the demand curve to shift.
C) The price ceiling will cause the supply curve to shift.
D) The price ceiling will decrease the number of students who want to rent an apartment.
E) The price ceiling will cause students to sleep in their cars or to move in with their friends because they won't be able to find a place to live.

Question

Quizplus · Accepted Answer

Placing a binding price ceiling on rent for student apartments could cause landlords to stop investing in maintaining or upgrading their properties since they won't be making as much money. This may lead to a decrease in the quality and number of apartments available for rent, causing students to either move in with their friends or sleep in their cars. Therefore, option E is the best choice.

One Strategy I Might Use to Be Elected Mayor of a University