Suppose the equilibrium price for apartments is $500 per month and the government imposes rent controls of $250. Which of the following is unlikely to occur as a result of the rent controls? A. The quality of apartments will improve. B. There will be a shortage of housing. C. Landlords may discriminate among apartment renters. D. Landlords may be offered bribes to rent apartments. E. There may be long lines of buyers waiting for apartments.

Question

Brendon Guzman

Business

26 July, 08:33

Suppose the equilibrium price for apartments is $500 per month and the government imposes rent controls of $250. Which of the following is unlikely to occur as a result of the rent controls? A. The quality of apartments will improve. B. There will be a shortage of housing. C. Landlords may discriminate among apartment renters. D. Landlords may be offered bribes to rent apartments. E. There may be long lines of buyers waiting for apartments.

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Natalia Case · Answer 1

A

Explanation:

When government imposes rent control, it stops the forces of demand and supply to affect price and as a result all of the options are likely except the landlord will improve the quality of the apartments. This is because the landlord does not stand to gain in the extra expense also they may have spent more money on the apartment than they are presently allow to charge which will not allow for regular maintenance of the building.