Governments seeking to improve living standards for people with low incomes sometimes introduce rent controls (maximum prices) on homes rented out by private landlords. What effects could rent controls have over the long run?
- AThe long-run supply of rental houses will contract.
- BThe number of unoccupied privately rented houses will increase over time.
- CThe price of owner-occupied houses will increase.
- DThere will be no effect on the supply of the rental housing.