Question

1. effects of rent control

rent controls force landlords to price apartments below the equilibrium price level. an immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price.
when cities prevent landlords from charging market rents, which of the following are common long - run outcomes? check all that apply.
□ black markets develop.
□ landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
□ nonprice methods of rationing emerge.
□ the quantity of available rental housing units falls.

Explanation:

When rent - control restricts landlords from charging market rents, black markets can develop as landlords and tenants try to bypass the regulations to achieve a mutually beneficial deal. Non - price methods of rationing like waiting lists or personal connections emerge since price can't allocate the scarce rental units. Also, with lower profits, landlords may reduce the quantity of rental housing units over the long - run, either by not maintaining existing units or not building new ones. The statement about rent having no effect on quantity or quality is incorrect as lower rents reduce incentives for landlords.

Answer:

Black markets develop.
Nonprice methods of rationing emerge.
The quantity of available rental housing units falls.