The correct answer is "Rent controls".
When the government establishes price controls, the artificial price phenomenon occurs because the price is determined arbitrarily without being based on the dynamic interaction between Supply and Demand.
A particular case of price controls is the control of rental prices.
In the event that the artificial price is below the market price, as in the chart, there would be an excess of Demand with respect to the Offer and this would discourage the owners to put their properties for rent.
Objections to the other options:
- The market price is that obtained from the interaction between supply and demand.
- In agricultural subsidies, the market price is respected, but the State subsidizes the Offer to guarantee that the producer does not lose part of its benefits.
- The minimum wage establishes a price that, if higher than the market price, employers are discouraged from hiring workers at that price and unemployment is generated.
