Asked by Karla Reyes on May 10, 2024
Verified
The primary effect of rent control in the short run is to reduce rents.
Rent Control
Government-imposed limits on the amount landlords can charge for leasing residential properties, intended to make housing affordable.
Short Run
A period in economics during which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.
- Examine the function of rent control as a type of price cap and its target objectives.
- Examine the transient and persistent consequences of rent regulation on housing sectors.
Verified Answer
AR
Autumn RebeccaMay 14, 2024
Final Answer :
True
Explanation :
Rent control laws set a maximum amount that landlords can charge for rent, which typically leads to lower rents than would prevail in an unregulated market, especially in the short run.
Learning Objectives
- Examine the function of rent control as a type of price cap and its target objectives.
- Examine the transient and persistent consequences of rent regulation on housing sectors.