In cities with rent control,people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates,because rent control causes a ________ of apartments.
A)above;surplus
B)above;shortage
C)below;surplus
D)below;shortage

Question

Quizplus · Accepted Answer

Rent control puts a cap on the rents landlords can charge tenants, leading to a shortage of apartments as landlords are disincentivized to offer their properties for rent. This shortage of rental properties creates an opportunity for landlords to list their apartments on platforms such as Airbnb at rates that are above the controlled rents. Therefore, option B is the correct answer as people have an incentive to list their apartments on Airbnb at rents above the controlled rates due to shortages caused by rent control.

In Cities with Rent Control,people Have an Incentive to List