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.

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Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied over a given period.

Most Elastic

Refers to the responsiveness of the demand or supply of a good or service to changes in its price, with the most elastic being the most sensitive to price changes.

Supply Least Elastic

Characterizes goods or services for which supply does not significantly change in response to price changes, often due to limitations in production capacity or availability of resources.