Suppose that, in a certain advanced industrialised country, the government has applied price controls
over rents of both public and private rented accommodation for a number of years, and a serious
problem of widespread homelessness has built up. Just recently, the rent price controls have been
eased. Which of the following consequences should now occur?
1 An increase in homelessness
2 In the longer term, an increase in new building work
3 The provision of more rented accommodation
4 Fewer owner-occupied dwellings