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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Problems from Imposing Maximum Rents?

Author: eric_galvao



Answer:

-Excess Demand leads to a Shortage of Available Properties and Encourages a Black Market to Develop. This would infer Higher Prices, making the Policy quite Useless. Furthermore, Landlords on the Black Market may offer not as good of a Service -Shortage of Rental Properties impacts the Supply of Workers. Workers may be Unable to find somewhere Near their Place of Work to Rent, affecting Firms to Hire and Attract Staff


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