A rent control law fixing rents below equilibrium will make the quantity of housing supplied:
AFully match
BFreely rise
CFirmly hold
DFall short
Answer & Solution
Correct answer: D. Fall short
1. Landlords earn less than the market would pay them.
2. Fewer flats are offered while more tenants want one.
3. So the quantity supplied falls short of demand.
_Source: OpenStax Principles of Microeconomics 3e, Chapter 3, Demand and Supply._
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