Question

12. Economists are often very critical of rent controls. Which of the following statements are likely to be supported by economists who do not like rent controls? I) rent controls cause the construction of lots of new rental units in the long run II) rent controls reduce the incentive for landlords to maintain their apartments III) rent controls lead to short run shortages of rental units, and hence to black markets IV) rent controls drive up the price of apartments in the short run A) only 1 B) only 11 C) only III D) only IV E) I & II F) I & III G)I & IV H) II & III 1) II & IV J) III & IV K) 1, II & III L) I, II & IV M) I, III & IV N) II, III & IV O) all four P) none of the four