A city's state cabinet has agreed on a rent freeze for five years to counter rising housing costs in the city. Only housing built since 2014 and some social housing will be exempt from the freeze. Discuss the effect of this policy on the quality and quantity of housing, on landlords and tenants, and on other markets.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter5: Supply, Demand, And Price: Applications
Section5.9: Application 9: Easier To Obtain Loans And Higher Housing Prices
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A city's state cabinet has agreed on a rent freeze for five years to counter rising housing costs in the city. Only housing built since 2014 and some social housing will be exempt from the freeze. Discuss the effect of this policy on the quality and quantity of housing, on landlords and tenants, and on other markets.

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