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1.The famous Swedish economist Assar Lindbeck remarked in his book on rent controls, "Rent control appears to be the most efficient technique presently known to destroy a city - except for bombing." Rent controls place price ceilings on rents at levels below equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using supply and demand analysis, answer the following questions:
• Explain how does imposing rent controls affect the number of housing units available to low-income families?
•Under rent controls, can all low-income families get rent-controlled housing?
•Who gains from rent controls? Who loses?
•Why would Professor Lindbeck think rent controls are destructive?
•Is there an alternative policy to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Explain in detail.
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Doing the work on paper and then writing the answers in Excel does not count as work and will earn zero points for this part of the assignment.
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