Because Rent Controls on Apartments Reduce Profits

question 203

Multiple Choice

Because rent controls on apartments reduce profits:

• A) developers build and rent more apartments to make up for lost profit.
• B) condominiums are converted into apartments.
• C) landlords are less likely to discriminate against minorities in renting out apartments.
• D) apartment managers will give less consideration to renters' complaints.

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Definitions:

Derived Demand

The demand for a product or service that arises not from the direct need or desire for that product, but rather from the demand for another good or service.

Automobiles

Motor vehicles designed for transporting passengers on roads.

Profit-oriented

A business approach focused on making financial gain and maximizing profit margins.

Purchased Goods

Items or commodities that have been bought by individuals or organizations, ranging from consumables to durable goods.