Price Ceilings: Rent Controls
- Title:
- Price Ceilings: Rent Controls
- Description:
-
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Rent controls are a type of price ceiling. We’ll use our diagram to show how rent controls create shortages by reducing the supply of apartments available on the market. Rent controls also result in reduced product quality, since they reduce the returns to landlords from renting apartments. Landlords respond by cutting costs or performing less maintenance, leading to lower quality. There are search costs associated with rent controls, and they also lead to a misallocation of resources since apartments are not allocated to renters who value them the most.
Microeconomics Course: http://mruniversity.com/courses/principles-economics-microeconomics
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- Video Language:
- English
- Team:
- Marginal Revolution University
- Project:
- Micro
- Duration:
- 09:43
Juan Marinho edited Portuguese, Brazilian subtitles for Price Ceilings: Rent Controls | ||
Juan Marinho edited Portuguese, Brazilian subtitles for Price Ceilings: Rent Controls | ||
Lilian Chiu edited Chinese, Traditional subtitles for Price Ceilings: Rent Controls | ||
Lilian Chiu edited Chinese, Traditional subtitles for Price Ceilings: Rent Controls | ||
Lilian Chiu edited Chinese, Traditional subtitles for Price Ceilings: Rent Controls | ||
Geane Alves edited Portuguese, Brazilian subtitles for Price Ceilings: Rent Controls | ||
Katalin Chikán edited Hungarian subtitles for Price Ceilings: Rent Controls | ||
Katalin Chikán edited Hungarian subtitles for Price Ceilings: Rent Controls |