Consider the following statements about the rent control pol…
Consider the following statements about the rent control policy and assess their veracity. It is a price ceiling on rents intended to make housing more affordable for the poor. Reduced rent creates a relatively small shortage of housing in the short-run, but a larger shortage in the long-run, because supply and demand are more elastic in the long-run. It is a price floor designed to stimulate construction of large apartment complexes.