Economics How do price ceilings in the rental housing market affect tenants? A. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. B. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run. C.Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing D. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling.

Economics How do price ceilings in the rental housing market affect tenants? A. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. B. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run. C.Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing D. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 12RQ: What determines the level of prices in a market?

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