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16 January, 14:46

19. Name something good that may happen from a rent ceiling.

20. Name something bad that may happen from a rent ceiling.

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Answers (1)
  1. 16 January, 15:10
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    Good effect: Rent ceiling provides rented house to the people in a reasonable rent.

    Bad effect: Rent ceiling in long term reduce the supply of rented house. Because Land lords would not want to invest in any new houses or apartments.

    Explanation:

    Rent ceiling refers to low placing in maximum price. Landlords make houses or apartments and give it in rent for earning and making benefit. In a small place it will accommodate person or family as much as possible. Small or less place in high price.

    One bad effect of rent ceiling in rent control some times landlords stop taking care of the house and its maintenance because he can not balance his investment by raising the rent of the house. Landlords also do not make new apartments.
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