Question

In four or more sentences, explain if rent control is a price floor or price ceiling. Then explain one advantage and one disadvantage of rent control.

Answer 1

Rent control is a mechanism by which the price of renting is kept within certain boundaries, such that it doesn't rise beyond a given level, nor grows at a rate higher than a specified rate. It's therefore a price ceiling. It can't be a price floor because any owner may decide to charge a fee as low as one may not be able to imagine. While there's no restrictions as to how low a landlord can go in terms of charging renters, the concept of price floor can't be considered here.

Answer 2

Answer:

Rent control is a tool by which the price of renting is kept within certain boundaries, such that it does not rise beyond a given level nor grows at a rate higher than a specified rate. It is, therefore, a price ceiling. It cannot be a price floor because any owner may decide to charge a fee as low as one may not imagine. While there are no restrictions on how low a landlord can go in charging renters, the price floor concept cannot be considered.

One advantage of rent control is that it allows for more affordable housing for some families. However, a disadvantage is that the landlords do not have complete control of their own property, which can be very frustrating.

Explanation: