This discussion will help you achieve the following learning outcomes:

• MLO4.1: Differentiate between demand-side market failures and supply-side market failures.
• MLO4.4: Explain how positive and negative externalities cause under- and overallocations of resources.
• MLO5.1: Describe how the government's power to coerce can be economically beneficial and list some of the difficulties associated with managing and directing the government.
• MLO5.2: Discuss "government failure" and explain why it happens.
• One of the hottest topics in expensive cities like Seattle is "should there be rent control?" This is the basic question of this discussion. Your task is to read the following articles and then give us your opinion.
• What have you learned so far about what determines prices such as the rent for an apartment?
• If people cannot afford rent, what are they to do?
• What are the consequences for controlling rent and for not controlling it?
• Is the current system fair?
• Remember, this is not an essay so don't write 3 pages of your opinion because no one will read it. Try to convince others of your points of view. Use economic concepts, personal experiences, and your own values to explain what you think. Tell others politely what you think of their ideas. Lastly, it's OK to change your mind on these issues as you participate in the discussion.

Sources: (I encourage you to find your own sources on the web, just be sure to post the URL)

• Your text (ch 4)
• Seattle Rent Control: Facts and Myths
• Seattle a Worst Case Scenario for Rent Control to Be Introduced

In your discussion entries, please consider the following:

• Do you have any personal experiences of renting in Seattle or other communities?
• What does economics teach you about rent control?
• Economics stresses bothefficiencyandequity(fairness).How can we achieve both these goals?

NOTE: You will be graded on the quantity and quality of your comments. I will mark down for sloppy thinking.This is not an essay, it's a discussion.Do not just answer the above questions. I want you to state your opinion and try to convince others of your point-of-view. It's OK to have mixed emotions or thoughts on this since it is a really hard economic problem.