a policy intended to make housing affordable for the poor (i.e., rent control) has had the net effect of shifting resources away from the building of:

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13-09-2022
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a policy intended to make housing affordable for the poor (i.e., rent control) has had the net effect of shifting resources away from the building of:

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qwcherry qwcherry · Answer 1 · 2022-09-16T10:27:38+02:00

a policy intended to make housing affordable for the poor (i.e., rent control) has had the net effect of shifting resources away from the building of: non-luxury apartments for the poor.

Rent controls force landlords to cost apartments below the equilibrium index. an instantaneous effect could be a shortage (excess demand) of apartments, because the number of apartments demanded is bigger than the amount supplied at the regulated price.

Rent control may be a price ceiling imposed by the government. A price ceiling could be a government-imposed limit on how low a price is charged and kept for an honest person. A price ceiling or price cap could be a regulation that creates it illegal to charge a price on top of a specified level.

When a price ceiling is applied to a housing put up for sale is termed a rent ceiling. If the rent ceiling is ready above the equilibrium rent, it's no effect. The market works as if there has been no ceiling. Rent control could be a broad term for legislation that limits rental rates during a city or state.

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