Rent control policies tend to cause

a. relatively smaller shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run.

b. relatively larger shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run.

c. relatively larger shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run.

d. relatively smaller shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run.

Question

Preston Irwin

Business

14 November, 09:53

Rent control policies tend to cause

a. relatively smaller shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run.

b. relatively larger shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run.

c. relatively larger shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run.

d. relatively smaller shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run.

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Answers (1)

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Ricardo · Answer 1

The correct answer is d. relatively smaller shortages in the short run than in the long run because supply and demand tend to be more inelastic in the short run than in the long run.

Explanation:

Rent control laws set limits on how much landlords can charge rent. The rent control laws specify:

What types of properties qualify for rent control. How often rent limits can be adjusted. How rent limits can be adjusted. Most rent control laws link increases in rental limits to an annual percentage of inflation in a local consumer price index. The conditions when a property is "out of control." Restrictions on the eviction of the tenant with rent control.

There are no federal rent control laws since the US Supreme Court. UU. He ruled that rent regulation is a state issue. Most states do not have rent control laws regulated. Only some cities and communities in some states continue to apply them.

In the United States, rent control laws were adopted during World War II when the country was experiencing a housing shortage. President Richard Nixon then passed the wage and price laws that influenced the modern rent control laws that are still being applied today. This is why most rent control laws usually apply to older properties built before 1980.