Rent Control Applies to About Two-Thirds of the Private Rental

question 44

Multiple Choice

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that a below-equilibrium price established by rent control:

• A) creates a surplus of rental housing.
• B) promotes a rapid increase in the future supply of housing.
• C) results in poor service and quality deterioration of many rental units.
• D) leads to a reduction in housing discrimination against minorities.