Supply and Demand Essay Example | Topics and Well Written Essays - 500 words

Supply and Demand - Essay Example acquire control, the worst planning by governments lacking courage and vision, has been spearheaded by upstate lawmakers such as AssemblymanThe consequences of exist control on apartments ar that entrepreneurs who see inadequate return on their investment are non motivated to invest in rental housing landlords whose rent do not cover cost of operations stop maintain units or abandon them despite rent controls, New York City renters remuneration the higher average rents in the country demand for excessive space remains high because rents are artificially low and rent control does not provide affordable housing for low to head income tenants.Rent control, like all other government-mandated price controls, is a law placing a maximum price, or a rent ceiling, on what landlords may charge tenants. To have any effect, the rent level mustiness be set at a rate below that which would otherwise have prevailed. And if rents are established at less than their equilibrium levels, demand entrust necessarily exceed supply, and rent control will lead to a shortage of dwelling spaces. In the absence of controls on prices, the amount of a commodity or service demanded is larger than the amount supplied, prices rise to eliminate the shortage (by both bringing onwards new supply and by reducing the amount demanded). But controls prevent rents from attaining market-clearing levels and shortages result.Existi