Asked by Jocelyn 30545 Leon on Jun 12, 2024
Verified
Rent controls generally provide the tenants the most efficient housing choice in the long run and maximize economic welfare.
Economic Welfare
The overall health and well-being of an economy, measured by factors such as wealth, happiness, and the distribution of resources.
Rent Controls
A restriction set by authorities on how much landlords can demand for renting out houses or apartments.
Long Run
An economic term for a timeframe in which all factors of production and costs are variable, allowing for full adjustment to changes.
- Analyze the long-term effects of rent controls on housing efficiency and economic welfare.
Verified Answer
BG
Breanne GnackeJun 19, 2024
Final Answer :
False
Explanation :
Rent controls may initially benefit tenants by keeping their rent low, but in the long run they can have negative effects such as reducing the quantity and quality of housing available, discouraging new construction, and reducing overall economic welfare. Over time, these negative effects can outweigh the benefits to tenants.
Learning Objectives
- Analyze the long-term effects of rent controls on housing efficiency and economic welfare.