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Rent Controls on Apartments

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With rent controls being placed on apartments for low income individuals, could all of them be able to get such housing using the demand and supply theory?
Ultimately, who would gain and lose in this situation?
Why or why not?
Could placing rent control be detrimental?

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Solution Summary

This solution looks at rent controls on apartments and the gains and loses in this situation.

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When rent control is put in place the market clearing price (rent paid) is lower than what will occur in a free market. As the price is lowered the demand increases (demand increases as things become cheaper) and the supply decreases (less ...

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