What happens to the quality of housing and why


Problem

Case Study: Rent Ceilings in New York City

Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibrium level.

a. What happens to the quantity of housing available?

b. What happens to the quality of housing and why?

c. Who benefits from rent control?

d. Who loses from rent control?

e. How do landlords of rent-controlled apartments try to get tenants to leave?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What happens to the quality of housing and why
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