When "Rent Controls" Result in a Shortage of Housing,landlords

question 102

Multiple Choice

When "rent controls" result in a shortage of housing,landlords

• A) use criteria other than price to allocate housing.
• B) lower the price to allocate the housing.
• C) attempt to attract renters.
• D) None of the above.

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Definitions:

Price Range

The spread between the highest and lowest price of a commodity, security, or asset over a given period.

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Perfectly Elastic

Describes a situation in economics where the demand or supply for a product can vary infinitely with a small change in price.

Inelastic

A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.