i think the supply housing units increase and landlords earn lower profits. woul

Question

i think the supply housing units increase and landlords earn lower profits. would that be correct?

L courses.aplia.com/af/servlet/quiz?quiz_actionstakeQuir&quiz;_probGuid-QNAPCOA801010000002ae008a0060000&ctx-malkiat.sandhul-0077; Berkeley City College Micro, Fall 2015 aplia Home Grades Personalized Reviews Discussion Course Materials Working with Supply and Demand Graded Assignment | Read Chapter 4 | Back to Assignment Due Sunday 10.11.15 at 11:45 PM Attempts: Average: /4 3. Effects of rent control Aa Aa Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is an excess demand of apartments, as the quantity of apartments demanded is greater than the quantity supplied at that price When cities prevent landlords from charging market rents, what can happen in the long run as a result? Check all that apply The future supply of rental housing units increases 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 The quality of rental housing units falls QNA 3.14 © 2004-2013 Aplia. All rights reserved Grade It Now Save & Continue 2013 Cengage Learning except as noted. All rights reserved Copyright NoticesTerms of Use Privacy Notice Security Notice Accessibility

Explanation / Answer

Firstly, reading the question was really difficult from the picture, due to the font.

Anwyays, the answer would be that

When landlords are prevented from changing rent in cities, it would lead to

d) the quality of rental housing units falls

b) black markets might also develop.

-> in the long run, the supply may also decrease there by the supply and demand curves change in long run to bring it back to equilibrium. However, this is a little far fetched idea.

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