In tight housing markets, rent controls are often applied to hold the price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords, and the allocative function of prices?

I found the missing choices of this problem. These are:

it prevents landlords from gaining at the expense of tenants : the allocative function of prices is impaired.

it prevents landlords from gaining at the expense of tenants : the allocative function of prices is NOT impaired.

it prevents tenants from gaining at the expense of landlords : the allocative function of prices is impaired

it prevents tenants from gaining at the expense of landlords : the allocative function of prices is NOT impaired

My answer:

it prevents landlords from gaining at the expense of tenants : the allocative function of prices is NOT impaired.

When housing are very expensive, families tend to rent instead of own houses because for them it is more practical and less expensive. In this scenario, because demand for rental houses are high, landlords tend to increase their rental fees to the detriment of their potential renters. This is where rent control is applied. The government can impose a maximum amount of rent so that the renters will still be able to rent houses that are affordable for them. The landlord on the other hand will still generate income but not to the detriment of the renters.