From an Efficiency Standpoint, Rent Controls

question 56

Multiple Choice

From an efficiency standpoint, rent controls:

• A) increase efficiency by allowing those households who could not afford high rents before to be able to purchase housing.
• B) increase efficiency by increasing consumer surplus.
• C) decrease efficiency because both buyers and sellers would be better off if the price of rents were allowed to rise.
• D) decrease efficiency because they make it illegal to trade.

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