Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 8

Suppose that college students in your town persuaded the town council to enact a law setting the maximum price for rental housing at $400 per month. Will this help or hurt college students who rent housing? In your answer, address how this price ceiling will affect (a) the quality of rental housing; (b) the amount of rental housing available; (c) the incentive of landlords to maintain their properties; (d) the amount of racial, gender, and other types of discrimination in the local rental housing market; (e) the ease with which students will be able to find housing; and, finally, (f) whether a black market for housing would develop.