Economics · Price Controls
In a certain country, the government applied strict rent controls over both public and private accommodation for a number of years, leading to a serious problem of widespread homelessness. Just recently, these rent controls have been eased. Which TWO of the following consequences are most likely to occur now? 1. An increase in homelessness 2. In the longer term, an increase in new building work 3. The provision of more rented accommodation 4. Fewer owner-occupied dwellings
- 11 and 4
- 2only 1
- 3only 4
- 42 and 3✓
Correct answer
2 and 3
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