On the other hand, rent control in certain areas, such as New York City, leads to permanent underpricing of real estate assets for the lucky tenants who have been the incumbent tenants. (The Boston Globe, April 28, 1997, p. A1.)
What does it mean to say an asset is "temporarily overpriced"
or "temporarily underpriced"? How can such a situation happen? Why is such overpricing or underpricing likely to be temporary? Can you suggest a situation that might lead to permanent overpricing or underpricing of an asset?

Question

Quizplus · Accepted Answer

The Answer of On the other hand, rent control in certain areas, such as New York City, leads to permanent underpricing of real estate assets for the lucky tenants who have been the incumbent tenants. (The Boston Globe, April 28, 1997, p. A1.)
What does it mean to say an asset is "temporarily overpriced"
or "temporarily underpriced"? How can such a situation happen? Why is such overpricing or underpricing likely to be temporary? Can you suggest a situation that might lead to permanent overpricing or underpricing of an asset?

On the Other Hand, Rent Control in Certain Areas, Such