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Assignment: In some cities, rents have skyrocketed, and long-term tenants find they can no longer afford to stay in their apartments. As a result, numerous proposals have been made to enact rent control ordinances that would keep rents in rent-controlled units below market clearing levels. Use the supply and demand model to illustrate and explain:
(a) The effects of rent control on equilibrium price and quantity of apartments offered
(b) Incentives for apartment owners to build new apartments
(c) The ability of long-time renters to remain in their housing
(d) The ability of newly employed workers to find apartments
Based on your answers, do you recommend rent control as a solution to the problem? What other options could be used to solve the problem? Do you think it is a demand or supply problem or both?
Your response should be at least 150-225 words (2-3 paragraphs) in length, including graphs with explanations. Be sure to reference at least one scholarly source to support your answer.
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