Consider the use of rent control policies for apartment buildings. Which set of words best fills in the blanks in the following statement:
Rent control policies are expected to create a in the market, and this will be a more severe problem in the .
a. Shortage, short-run
b. Shortage, long-run
c. Monkey, coconuts
d. Surplus, short-run
e. Surplus, long-run
Tutor Changed status to publish April 11, 2019
Sorry, you do not have permission to read comments.
As per the statement given above, Rent control policies are expected to create a shortage in the market and this will be a more severe problem in the long run. Hence, option B is the correct option.
The reason behind this is that the rent control policies severely restrict the supply of the rooms and in the long run, this turns out to be a very major problem.
Tutor Changed status to publish April 11, 2019
Sorry, you do not have permission to read comments.