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The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market
The cost of rental housing has ballooned over the past decade, and so the government is considering implementing a rent control law. The current market rate for rental housing is $1300 per month, and the government proposes a rent ceiling of $1000 per month. Which of the following statements are false? (Select all that apply.) [:1 a. There will be an excess supply of housing. C] b. The rent-control law will have no effect on the market. D c. There will be a shortage of housing. C] d. We would except to see an increase in the supply of nonrental housing units. C] e. The law would make rental units more expensive. D f. The government could alleviate the issues by taxing builders. D g. The law may result in an increase in the cost of non-rental housing. C] h. The government could alleviate the issues through a subsidies. C] i. As a result of the rent-control law, we would expect to see new low-cost rental units being built. C] j. Due to the low rental rates, landlords are less likely to invest in rental units
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