i would guess c and d.
Apartments would be renovated into condos and sold.
This would almost by definition create an apartment shortage.
but what the hell do i know, i am a security guard.
What Would Economists Say That Eventual Result Of That Ordinance?
A city adopted a rent-control ordinance that put a ceiling on the amount of rent apartment owners could charge.
A) This would have no effect on the availability of apartment.
B) There would be a decrese in the number of persons in terested in renting an apartment.
C) Commercial real estate would begin to convert to residential.
D) An apartment shortage would develop.
E) A surplus of apartments would develop.
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2 comments - add yours
Smartphone Software
July 20, 2009
Andy J
July 20, 2009
D makes most sense to me. A and E are dumb, B doesn’t make sense because higher class apartments would be cheaper, C doesn’t work because while there would be more demand for apartments; there would be a corresponding demand reduction of housing and the rent cap would lower the value of apartments; so there would be no reason for developers to buy commercial zones to build more of them.
