Question

Rent control

is opposed by economists because they are opposed to the idea of affordable housing

is a price floor on rents - and therefore has multiple problems

is seen by economists as an effective way to keep rents low for low-income families

forces one group to pay the main costs of a social goal

In the supply and demand framework, equilibrium exists

when the demand curve intersects the price axis

when the demand curve intersects the quantity axis

whenever there is no government intervention

when quantity supplied equals quantity demanded

Answer 1

1) Rent Control is a form of price ceiling where the prices of rent can't be increased above a certain point.

The first option is wrong no one is against the idea of affordable housing. The second option claims it to be a rent floor but rent ceiling will be the right option.

The third option is wrong because it is not seen as an effective way to keep rent low, but a distorted version which is preventing the house owners to get the full value of their home.

The correct answer to this question is "D" Fors one group the flat owners to pay the price for the social goal of affordable housing.

2) The correct answer to this question is "D" Equilibrium is a point where the demand and supply are equal.