3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The quality of rental housing units falls. Nonprice methods of rationing emerge. The future supply of rental housing units increases. Black markets develop.

Options A and B is the correct answer

Explanation:

Rent Control Acts create both long-term and short-term problems are created by rent control acts.

The Rent Control Act in the short-run results in a shortage of rental units. However, in the long-run, the impact of these Acts is more serious.

With no change in rent, the incentive for owners to sustain the quality of rental units and thus charge higher rent gets banished.

As to this, they do not maintain their units properly, and the result of this is a decline in the quality of rental units in the long-run.

Secondly, scarcity of rental units gives rise to various non-price rationing methods that owners use to allocate their rental units.

Thus, options A and B is the correct answer.

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