Which of the following is least likely to result from rent controls set below the equilibrium price for rental housing? a. Shortages and black markets will result. b. The existing rental housing will deteriorate. c. The supply of rental housing will increase rapidly. d. People will demand more apartments than are available.

Rent controls usually involve setting a maximum price for rental housing that is below the equilibrium price, which is the price at which the quantity demanded equals the quantity supplied. These controls are intended to make housing more affordable for renters. However, they can lead to some unintended consequences, such as shortages, deterioration of existing housing, and changes in supply and demand.

Let's review each option to determine which is least likely to result from rent controls set below the equilibrium price for rental housing. a. Shortages and black markets will result: When rent controls are below the equilibrium price, the quantity of rental housing demanded exceeds the quantity supplied, leading to a shortage. This makes it more likely for black markets to develop, where landlords might charge higher prices in secret or demand illegal fees to compensate for the lower rent. b. The existing rental housing will deteriorate: Due to price controls, landlords may not receive enough rental income to cover the costs of maintaining and updating their properties. Consequently, the quality of rental housing may deteriorate. c. The supply of rental housing will increase rapidly: When rent controls are set below the equilibrium price, landlords are discouraged from creating new rental housing. They might instead focus on other types of real estate investments, which could offer better returns. Therefore, this assertion is not likely. d. People will demand more apartments than are available: As rent controls make housing more affordable for renters, the quantity demanded for rental housing will increase. However, the quantity supplied will not change, leading to a higher demand than available apartments.

Based on our analysis, the least likely option to result from rent controls set below the equilibrium price for rental housing is: c. The supply of rental housing will increase rapidly. This is because rent controls discourage landlords from investing in new rental housing, as they can receive higher returns on other types of real estate investments.