Assuming That the Long- Run Supply of Housing Is Highly

Multiple Choice

Assuming that the long- run supply of housing is highly elastic, the imposition of binding rent controls will lead to

A) no significant change in the housing shortage over time.
B) a reduction in the housing shortage over time.
C) only a temporary housing shortage.
D) the price of rental housing to revert back to its free- market equilibrium level.
E) a worsening of the housing shortage over time.