Question

Low-income people are having troubles with affordable housing in the city of Phoenix, so the government sets rent controls where the price is lower than the market.

A) True
B) False

Answer 1

Rent control is a policy implemented by the government to set maximum prices on rents, which are lower than the market price. It aims to make housing more affordable for low-income individuals or families, but it can have negative consequences.

Step-by-step explanation:

The statement is true. Rent control is a policy implemented by the government to set maximum prices on rents, which are lower than the market price. This is done to make housing more affordable for low-income individuals or families. However, while rent control may benefit renters by providing lower rents, it can lead to negative consequences such as reduced supply of rental units and potential displacement of renters in the long run.