1. Why do you think governments frequently attempt to control apartment rents but not house prices? 2. What determines the size of the key-money payments that landlords demand (and tenants offer) for the right to lease a rent-controlled apartment? 3. Who, other than the owners of rental units, loses as a result of rent controls? Who gains from rent controls? What effect would the imposition of rent controls have on the market price of an existing single-family house? What effect would rent controls have on the value of vacant land? 4. Why do the owners of rental units reduce their maintenance expenditures on the units when rent controls are imposed? Does their decision have anything to do with whether they can afford those expenditures? 5. Because rent controls reduce the rental price below the market clearing price, the quantity of rental units on the market must decline. What does this imply must happen to the full cost of renting an apartment including "key money," harassment by the landlord, and so forth? Explain. 6. How does the percentage of voters who are renters (as opposed to owners) affect the incentives for politicians to propose rent controls? Does this incentive depend on