ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Yes, rent control is considered to be a price ceiling example, since rents can be demanded by different owners differently, therefore there has to be a price limitation so that rent is affordable and can be paid.

Detailed explanation-2: -Rent control places a maximum limit on the rent. It is an example of a price ceiling.

Detailed explanation-3: -Rent control is an example of a price ceiling, a maximum allowable price. With a price ceiling, the government forbids a price above the maximum. A price ceiling that is set below the equilibrium price creates a shortage that will persist.

Detailed explanation-4: -As a result, the City of New York instituted a price ceiling on rent. Prior to the return of the American soldiers, assume that apartments had been renting for $500 a month, and there was a demand for 600, 000 apartments. Now that the City of New York has imposed a price ceiling, by law, rent prices cannot exceed $400.

Detailed explanation-5: -In New York City, Rent Control tenants are generally in buildings built before February 1, 1947, where the tenant is in continuous occupancy prior to July 1, 1971. Tenants who took occupancy after June 30, 1971, in buildings of six or more units built before January 1, 1974, are generally Rent Stabilized.