Suppose There Are Two Cities That Have Rent Controlled Apartments

question 76

Multiple Choice

Suppose there are two cities that have rent controlled apartments.In one city (Albany) all apartments are subject to rent control; in the other city (Halftrack) one-half of the apartments are rent controlled.Which of the following is most likely to be true?

• A)It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control.
• B)It will be easier to find an affordable apartment in Albany since rents will be low across the board.
• C)It will be easier to find an affordable apartment in Halftrack,either a rent-controlled apartment or another apartment,at a reasonable price.
• D)It will be impossible to rent an apartment in either city at any price.

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Definitions:

Group-centred

Focused on or revolving around the interests and needs of the group as a whole.

Laissez-faire

A policy or attitude of letting things take their own course, without interfering, often referred to in economics to describe a free-market system with minimal government intervention.

Coercion

The practice of compelling someone to act in an involuntary manner by use of threats or force.

Conformity

Deep-seated, private and enduring change in behaviour and attitudes due to group pressure.