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November 12, 2021

Apply your learning of supply & demand and how price controls may lead to undesirable price and output outcomes

Order InstructionsApply your learning of supply & demand and how price controls may lead to undesirable price and output outcomes (Chapter 4) while doing this assignment.

Questions:

1. What was the original intent behind rent control? 20 pts. Limit answer to 3 lines.

2. Why did voters in Boston decide to eliminate rent control? 20 pts. Limit ans. to 4 lines.

3. The author argues that rents are higher in cities in which rent control exists than in cities without rent control. Does this necessarily suggest that rent control raises the rental rate for housing? Is there another possible interpretation? 20 pts. Limit answer to 4 lines.

4. Use a diagram containing demand and supply curves to illustrate the effects of rent control on the quantity of housing demanded and supplied. 40 pts. Limit ans. to 6 lines.

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