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16 January, 17:12

When rent control pushes the price of apartments below the market equilibrium, then everyone who would like a rent-controlled apartment will be able to find one. a shortage of the apartments will develop. a surplus of apartments will emerge. the scarcity of apartments will be eliminated?

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Answers (2)
  1. 16 January, 17:19
    0
    a shortage of the apartments will develop.

    Explanation:

    Demand exceeds supply when prices fall below the equalibrium a shortage of the apartments will develop.
  2. 16 January, 17:36
    0
    It will lead to an excess demand and a shortage in supply.

    Explanation:

    Market equilibrium price is the price at quantity demand of a good is equal to the demanded.

    From the question, market equilibrium price or rent is the rent at which the number of demand for rented apartments by people who want them is equal to the number of the rented apartments made available by the apartment owners.

    When rent control pushes the price of apartments below the market equilibrium, it will lead to an increase in the demand for rented apartment but it will lead to a fall in the supply of rented apartment. This will lead to an excess demand and a shortage in supply.

    Consequently, everyone who would like a rent-controlled apartment will be able to find one will not be able to get one, a shortage of the apartments will arise, there will not be a surplus of apartments but shortage, and this will increase the scarcity of apartments.
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