Only one-third of New York City\'s 2m rental apartments are free of some kind of
ID: 1152069 • Letter: O
Question
Only one-third of New York City's 2m rental apartments are free of some kind of price restraint. A city board sets annual increases and administers an ever more complicated system. In some buildings, people live in similar apartments but pay wildly different levels of rent. In others, lone grandmothers sit in huge apartments, aware that moving would mean paying more for a smaller place elsewhere.
Most economists are against rent controls. Who were intended to be helped? And how much were they actually helped?
Analyze the negative economic and social consequences and the causes of rent controls from both the supply side and the demand side of housing market.
Explanation / Answer
the rent control was introduced by the us state legislative inorder to protect the tenants from war related housing shortage.
if the rent are less than equilibrium level the quantity demanded wil exceed the amount supplied.
the amount of coomodity commodity or service are above the zmount supplied increase in price will reduced the shortage by new supply and alsodecrease the demand .But control on rent will not able to attain the marketing decreasing levels and the result is shortage.And with this shortage the excess demand have a control over the unconrolled sector.
The high demand and small quantity supplied inthe uncontrolled sector will caused by rent control.
the rent control also causes shortage and low quality in the service
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