WebPrice controls have the potential to reduce total surplus. In this video we step through some details on how one kind of regulation, a price ceiling, can reduce economic efficiency. A real world example of a price ceiling is rent control, which some cities have experimented with as a way to control rising housing costs. Created by Sal Khan. WebRent control decreases landlords’ profits and subsequently lower their incentive to invest in property upkeep. (Rent control tends to dissuade landlords from reinvesting in the maintenance of their properties, and subsequently accelerates the degradation of the property.) Incorrect Answer (s) 1.)
Assuming that the long run supply of housing is more - Course …
Webthan the short-run supply, the Assuming that the long-run supply of housing is more imposition of binding rent controls will generally... a. Inelastic; lead to no significant change in the housing shortage. o b. Elastic; lead the price of rental housing to revert back to its equilibrium level. C. WebIf quantity supplied equals 80 units and quantity demanded equals 85 units under a price control, then it is a: A) binding price ceiling B) binding price floor C) nonbinding price ceiling D)... flipper finders boat \u0026 sea kayak tours
Assume That the Long-Run Supply of Housing Is Highly Elastic
WebBinding rent controls lead to a shortage (excess demand) in the availability of rental housing. The short run supply curve for rental housing is quite inelastic; the long run supply curve is quite elastic. A housing shortage caused by rent controls grows larger over time. The group that benefits the most from rent controls is existing tenants. WebThere is general agreement that the rent control program has reduced tenant mobility, led to a substantial gap between rents on controlled and uncontrolled units, and favored long-term residents at the expense of … WebRent controls are great for those fortunate enough to occupy such dwellings at the time controls are imposed. They are not so good for those who do not occupy such units and are unlikely to... flipper finders boat \\u0026 sea kayak tours