Using the video clip, Seinfeld- The Apartment/Rent Control https://www.youtube.com/watch?v=uzda2bjj6YI Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that sellers (landlords in this case) are worse off. Consider if there is an argument to be made that consumers are worse off, too.

In the clip, the Landlord offers the apartment upstairs to Jerry's friend Elaine for $400 a month. The landlord then takes back the offer because someone else is willing to pay him $5,000 for the apartment upfront. After watching the Seinfeld video clip, discuss how some consumers are made better off and some are not in a rent-control situation. What kinds of rationing mechanisms would develop to help allocate the few apartments that are available? In your opinion, do the benefits of rent control outweigh the costs? price control, price ceiling, price floor, tax, subsidy, market failure, public goods, externality, positive externality, and negative externality.