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.

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Activities associated with price Ceiling

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

Activities associated with the Voucher

Can be targeted to help specific subsets of the populationIncrease the amount of available housingrelies 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)

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