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

Demand for chips elastic, The demand schedule for computer chips is given i...

Williamson’s Model of Managerial Discretion , equilibrium output and prince...

Theory., ExplainBainlimitpricetheory

Chamberlins model, lung run eqiulibrium

Formation of nitrobenzene , reaction of mechanism of nitrous acid with benz...

Compare between perfect competition and monopoly, Question 1: Compare a...

Production possibility curve, In 1939 the U.S. economy was operating where ...

State property regime , State Property Regime Normal 0 ...

Traditional economy , what is traditional economy 2 features of traditional...

Williamson''s managerial discretion., how is price and output equilibrium d...

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