maximum price set by the rent control law. However, the underlying forces that shifted the demand curve to

the right are still there. At that price ($500), the quantity supplied remains at the same 15,000 rental units, but

the quantity demanded is 19,000 rental units. In other words, the quantity demanded exceeds the quantity

supplied, so there is a shortage of rental housing. One of the ironies of price ceilings is that while the price

ceiling was intended to help renters, there are actually fewer apartments rented out under the price ceiling

(15,000 rental units) than would be the case at the market rent of $600 (17,000 rental units).

Price ceilings do not simply benefit renters at the expense of landlords. Rather, some renters (or potential

renters) lose their housing as landlords convert apartments to co-ops and condos. Even when the housing

remains in the rental market, landlords tend to spend less on maintenance and on essentials like heating,
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