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    price ceiling or a price floor

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    If rent controls are so counterproductive, why do cities impose them? Who is harmed by rent controls? Who is helped? Give an example of a price ceiling and an example of price floor. Which one causes a shortage of a good - a price ceiling or a price floor? Which one causes a surplus?

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    Cities impose rent controls so that unwary consumers (house seekers) are not exploited by property builders or real estate agents. Even though they are counterproductive, still rent controls are imposed so that the industry is controlled and discipline. A ...

    Solution Summary

    A price ceiling or a price floor is named.