Supply and demand, #questioIn many metropolitan areas of the country, local governments, Microeconomics

Supply and demand, Microeconomics

Assignment Help:

#questioIn many metropolitan areas of the country, local governments often impose rent controls on apartments. The justification for doing so is that the current market rent is considered to be “too high” for those whose incomes are low. In this manner, local governments set a price ceiling on rents charged by landlords (the owners of the rent-controlled buildings). However, landlords cease to be responsive to the renters’ concerns about the quality of the apartments. As a result, rent-controlled apartments are often dilapidated and almost unlivable for renters. Which of the answer choices best explains the reason for this?

A.
With rent control, local governments guarantee landlords a minimum level of profit.

B.
Landlords accept the fact that many of their apartments are going to be vacant at any given time.

C.
With shortages and waiting renters, landlords have no incentive to maintain and improve their properties.

D.
With rent control, local governments take responsibility to maintain rental housing. Because of budget shortfalls, many local governments do not have the tax revenue to maintain the properties.n..

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Supply and demand, Microeconomics

Related Discussions:- Supply and demand

Physical accounting, Normal 0 false false false EN-IN ...

Markets, Syndicated and organized oligopoly

Simple human capital model, Question 1: i) Use a simple human capital m...

Axioms of consumer preference, determine if completeness and transitivity a...

Law of diminishing marginal utility, law of diminishing marginal utility it...

Defination, what is Microeconomics?

When is the price of a product demand determined, When is the price of a pr...

Monopoly, unique product

Mixed economy, is south african economic system more allocative efficient?

Dominent firm model, describe the dominent firm model

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT