Yes, because it helps residents access housing at affordable prices.
No, because it reduces the number of appartments up for rent.
No, because it fosters a black market of appartments for new tenants in which prices continue rising.
No, because it discourages maintenance investments and reduces the quality of appartments up for rent.
Yes, because those who rent at high prices in the black market will not be allowed to register to vote in local elections.
Total votes: 92
Learning objectives:
Understanding the economic effects of a price ceiling with the help of a supply and demand model.
Understanding that the supply of appartments is somewhat inelastic in the short term.
Understanding the effects for appartment owners, old tenants and new tenants.
Understanding that politicians electoral horizons are short-term.
Understanding the electoral effect of a price ceiling.
Getting acquainted with selectorate theory and the logic of political survival.
Presentation videos: