Question

suppose that the average rent for apartments around your school is extremely high, and that you have been asked to come up with a solution. There are two ideas being considered. Create a price ceiling that makes it against the law for landlords to charge more than $1000 per month. Give low‑income renters a voucher of $300 that can be used to help pay for housing costs each month. Organize the items according to which idea they are associated with.

Answer 1

Answer:

Part of the Question is missing (Kindly refer to the attachment for the full questions)

Activities associated with price Ceiling

• Pushes down housing costs for people who are well off and poor alike
• results in firms having a reduced incentive to build new housing
• reduce Landlords incentive to spend money on maintenance

Activities associated with the Voucher

• Can be targeted to help specific subsets of the population
• Increase the amount of available housing
• relies upon funding from the Government

Explanation:

Activities associated with price Ceiling

• Pushes down housing costs for people who are well off and poor alike (this is the objective of the scheme to keep rent at a maximum of $1,000 to every student)
• results in firms having a reduced incentive to build new housing (makes the venture less lucrative to investors)
• reduce Landlords incentive to spend money on maintenance (Landlord will be least interested in cutting his limited inflow by spending on maintenance)

Activities associated with the Voucher

• Can be targeted to help specific subsets of the population (the voucher can be issued to the needy segment of the student population)
• Increase the amount of available housing (It doesn't stop the landlord from charging high rent, the students are earning subsidies on their rental payment)
• relies upon funding from the Government (It's the Government that will provide the subsidy payment to the students)