When rent control is imposed above the current market price it will:

CA Foundation · Business Economics · MTP · June 2024
When rent control is imposed above the current market price it will:
(A) A. increase the quantity of rental housing demanded.
(B) B. reduce the quality of rental housing.
(C) C. create a shortage of rental housing.
(D) D. create no impact on the market.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. create a shortage of rental housing.

Topics: Nature & Scope of Business Economics

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic