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A local government has imposed rent controls on the owners of rental units, setting a legal maximum rent per month. What kind of market failure
A local government has imposed rent controls on the owners of rental units, setting a legal maximum rent per month. What kind of market failure is this, and what is the imbalance that arises as a result? Information symmetry; a market advantage is created for the owners Government failure; a market advantage is created for the owners Information asymmetry; a market advantage is created for the renters Government failure; a market advantage is created for the renters
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