Rent control:
A)involve only a transfer of wealth from landlords to tenants.
B)leads to higher prices for apartments at the margin if we include implicit costs.
C)does not affect the long run supply of the housing stock.
D)increases social welfare.

Question

Quizplus · Accepted Answer

Rent control leads to higher prices for apartments at the margin when considering implicit costs such as reduced quality and availability of housing, increased search costs for tenants, and potential under-the-table payments to secure rental units.

Rent Control