Other things being equal, the increase in rents that occurs after rent
Other things being equal, the increase in rents that occurs after rent controls are abolished is smaller when
A) the own price elasticity of demand for rental homes is price inelastic.
B) the own price elasticity of demand for rental homes is price elastic.
C) the own price elasticity of demand for rental homes has unitary price elasticity.
D) rented homes and owned homes are complements.
E) rented homes and owned homes are substitutes.
ANSWER
B
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