Asked by Bailey Ennis on May 19, 2024
Verified
The management of a rental building faces a rent control situation,where it cannot charge more than $400 a month in rent on the apartment.The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them.The management will
A) Do nothing-it cannot violate the regulation
B) Offer a bundle of both the apartment and furniture together for $1000
C) Offer the controlled rent but force the tenants to rent furniture from the management
D) Both B&C
Rent Control
Government policies or laws that limit the amount landlords can charge for leasing residential properties in order to keep housing affordable.
High Demand
A market condition where the desire and need for a product or service significantly exceed the available supply.
Bundle
A set of goods or services sold together as a single combined unit.
- Investigate procedures practiced by enterprises to skirt around price and rent regulations.
Verified Answer
MP
Maria PegueroMay 24, 2024
Final Answer :
D
Explanation :
Both options B and C are strategies that the management might use to circumvent the rent control regulation, allowing them to effectively charge more than the $400 limit by bundling the apartment with furniture or requiring tenants to rent furniture.
Learning Objectives
- Investigate procedures practiced by enterprises to skirt around price and rent regulations.