Rent Controls Create Distortions in the Housing Market By

question 212

Multiple Choice

Rent controls create distortions in the housing market by:

• A) increasing rents received by landlords
• B) raising property values.
• C) encouraging landlords to overspend for maintenance.
• D) discouraging new housing construction.
• E) increasing the supply of housing in the long run.

---

Definitions:

Safety Inventory

A buffer of stock kept on hand to protect against variability in demand or supply, ensuring that a product remains available for customers despite uncertainties.

Low Demand

Refers to a situation where the market's desire for a product or service is lower than the supply.

Low Value Items

Products or materials that have a relatively low cost or worth compared to other items in an inventory or catalogue.

Total Cost

The complete expense incurred for producing, maintaining, and selling a product or service, including fixed and variable costs.