Which of the Following Will Most Likely Result from Rent

question 29

Multiple Choice

Which of the following will most likely result from rent controls that reduce monthly rental rates below market equilibrium?

• A) Shortages and black markets for rental housing will develop.
• B) The quality of rental housing will improve.
• C) The future supply of rental housing will increase rapidly.
• D) Discrimination against minorities and persons with unconventional lifestyles will decline in the rental housing market.

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Definitions:

Private Consumptions

The spending by households on goods and services, excluding purchases of new housing but including healthcare, education, and entertainment.

Majority Vote

A decision-making rule where the option that receives more than half of the votes is chosen.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.