Some governments set rent controls, meaning maximum prices, for homes leased from private landlords. They put these rent controls in place to raise the living standards of people with low incomes. What could be the long-run effects of rent controls?
- 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 rental housing.