Price Ceilings: Rent Controls

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. Try our price ceilings interactive practice: https://mru.io/u7y Microeconomics Course: https://mru.io/zur Next video: https://mru.io/a88 Help us caption & translate this video! http://amara.org/v/GLJ9/ https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Introduction https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Rent Controls Are Price Ceilings https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Rent Controls Create Shortages https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Effect of Debating Rent Controls https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Reductions in Product Quality https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Wasteful Lines and Search Costs https://www.seevid.ir/fa/w/hMkvmZK3AJ4 Misallocation of Resources

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