Rent controls are laws that place a price ceiling (or maximum price) on what landlords are able to charge their tenants in a particular city. Although it certainly sounds wonderful to pay less for an apartment, by their very definition rent controls are inefficient and lead to market failure.

• Why are rent controls inefficient?
• What is the market failure that occurs when rent controls are imposed?
• Put economic theory aside for a moment. Do you think that cities such as New York Cityshouldutilize rent controls? Why or why not?