This answer is right? 16 Home Grades Personalized Reviews Discussion Course Mate

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This answer is right? 16 Home Grades Personalized Reviews Discussion Course Materials ews Analysis-Microeconomics raded Assignment | Back to Assignment Due Sunday 05.08. By Warren Palmer, Beloit College A price ceiling sets the maximum price at which a buyer and seller can make a trade. ORIGINAL ARTICLE when governments prevent capitalistic acts between consenting adults Supporters of price ceilings may intend to help consumers by keeping prices Rent control is the economist's classic example of a price ceiling and of what happens Learning from China (The New York Times, July 01, 2003) affordable. In economics, however, good intentions do not guarantee good results Basic economic theory shows that rent ceilings reduce the quantity supplied of rent controlled housing in the short run and decrease supply in the long run. Renters who successfully lease an apartment benefit from the lower prices, but those who cannot rent are left out in the cold and must search for alternative housing As the article notes, rent controls have multiple negative effects: Rent control discourages new investment in rent-controlled housing and encourages landlords to seek alternative uses for their rent-controlled properties. In addition, price controls for some types of apartments will increase prices for apartments without price controls. Renters frustrated in the controlled market will seek apartments in the uncontrolled market, shifting the demand curve in this market to the right and thus increasing equilibrium price. Rent controls also reward long-term residents of rent controlled apartments,and punish new arrivals to the houwsing market who cannot find apartments, thereby discouraging the mobility on which cities thrive. In addition, effective rent controls require spending government rive. In addition, efflective rent controls require spending sovernment funds to police and enforce the price ceiling while criminalizing voluntary acts of trade. Read the original article, then click Continue to answer the problems

Explanation / Answer

C) 67%.

if we read the original article then at the end of two arguments against the false assumptions, beginning with the words ' Right Now' we find the line stating that there are one third of apartments that are unregulated.

It means that two third or 67% of the apartments are under rent control.

(http://www.nytimes.com/2003/07/01/opinion/learning-from-china.html)

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