In the Presence of Binding Rent Controls,the Shortage of Housing

question 85

Multiple Choice

In the presence of binding rent controls,the shortage of housing is smaller

• A)the higher is the elasticity of demand for housing.
• B)the lower is the elasticity of supply of housing.
• C)the longer is the length of time the rent controls are in place.
• D)the greater is the difference between the equilibrium price and the rent-controlled price.
• E)the more elastic is the long-run supply of housing.

---

Definitions:

Mutuality

The sharing of feelings, actions, or relationship characteristics that are mutual or reciprocal between individuals or groups.

Permeability

The quality of allowing liquids or gases to pass through, commonly used in the context of materials, but also metaphorically to describe the flexibility and openness of systems or boundaries.

Self-assertion

The act of confidently and directly expressing one's opinions, needs, and rights without violating the rights of others.

Separateness

The state or condition of being distinct, individual, or not connected to others.