A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2020 · Q151 Mark
A government imposes a maximum rent in order to make rented housing more affordable. What is likely to be a long-run consequence if the maximum is set below the current free market level?
Ashortage of applicants for rented housing
Bshortage of rented housing
Can increase in supply to satisfy the increased demand for rented housing
Dan increase in the number of houses being rented
✓ Correct answer
B: shortage of rented housing
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