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.

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Definitions:

Prohibits Assignments

A clause within contracts that restricts or forbids the transfer of rights, responsibilities, or interests from one party to another without prior approval.

Partial Assignment

The transfer of a portion of one’s interest in a contract, deed, or benefit to another party.

Assignment of Rights

The transfer of rights held by one party to another party.

Contract

A pact among two or more parties that holds legal force and is binding.