Who Is Most Likely to Benefit from Rent Controls

question 41

Multiple Choice

Who is most likely to benefit from rent controls?

• A) Consumers who are able to obtain apartments at the controlled rents
• B) Consumers who are unable to obtain apartments at the controlled rents
• C) Landowners who can lease the apartments at the controlled rents
• D) The government that controls the rents

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Definitions:

Market Price

The price of a good or service as determined by supply and demand in the open market.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean used in a variety of foods and products.

Short-Run Profit

Profits earned by a firm in a period where at least one input is fixed, reflecting immediate financial performance.

Shut Down

A short-term decision by a firm to cease production due to market conditions, often when the revenue from sales cannot cover variable costs.