Title: Price Ceilings: Rent Controls| Microeconomics Videos
Headings: Price Ceilings: Rent Controls
Price Ceilings: Rent Controls
Content: And that's in fact one of the techniques, which New Yorkers use to try and get a rent-controlled apartment. Another effect of rent controls is to increase discrimination because rent controls reduce the price of discrimination. In a free market, landlords might discriminate. But then, they pay a price because it's going to take them longer to rent out the apartment. But, precisely because the rent control makes the quantity demanded exceed the quantity supplied, there are more people lining up to get apartments than there are apartments. So, landlords can more easily, or at lower cost, pick and choose whom they rent to. Therefore, for minorities or for people with children, or for people whom landlords are perhaps slightly don't want in their apartment, the cost to them of obtaining apartment is going to be even higher than for the average person. Another effect of rent controls, which is very common is paying bribes to get a rent-controlled apartment. Bribes, of course, are illegal. This is illegal, but there are ways of disguising the bribe.