Why Is the Long-Run Supply Curve of Rent Controlled Apartments

question 164

Multiple Choice

Why is the long-run supply curve of rent controlled apartments typically more elastic than the short-run supply curve?

• A) In the long run, fewer new apartments are built, and older apartments are torn down or turned into condominiums.
• B) In the long run, many more new apartments are built and this increases the supply of rent controlled apartments.
• C) In the long run, rent controls are always removeC.
• D) In the long run, the shortage of rent controlled apartments becomes significantly less.

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