Question

Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that sellers (landlords in this case) are worse off. Consider if there is an argument to be made that consumers are worse off, too. a) After watching the Seinfeld video clip, discuss how some consumers are made better off and some are not in a rent-control situation. b) What kinds of rationing mechanisms would develop to help allocate the few apartments that are available? c) In your opinion, do the benefits of rent control outweigh the costs?please type

Answer 1

apron ceiling is there mandated maximum price a seller is allowed to charge for a product or service usually set why low price ceiling are usually applied only to staples such as food and energy products when such goods became an affordable regular consumers.some areas have rent feelings to protect renters from climbing rent prices and touch price control sometimes imposed by government is a price floor which sets a maximum price at which a product or service can be sold.

The impact of price ceiling

price ceilings can be advantages in alloying essentials to be awarded with at least temporarily however economics question how beneficial such feelings are in the long run even at protecting the most vulnerable consumers from high prices day one product and for many reasons can also carry disadvantages.a surprise film shot of demand shortages developed and reasoning was of an improved through schemes like alternating days in which only cars with odd and even number licence plates would be served those long rates in post quotes on the economy and motorists to last wages and other negative economic impact.

the supposed economic relief of controlled gas prices was also upset why some new expenses some gas stations short to compensate for last revenue by making formally optional services such as washing the windshield a required part of filling up and imposed charging for them.

rent ceiling another frequently cited example of the in effectiveness of price controls these were implemented in New York city and other cities in your state in an effort to help maintain a adequate supply of affordable housing however the actual affect critics says has been to reduce the overall supply of available residential rental units which in turn has led to even higher prices in the market.

father son housing analysts se controlled rental rates also discourage landlords from having the indeed funds are at least committing the necessary expenditure to maintain or improve rental properties leading to deterioration in quality of rental housing.