A local government decides to impose a price ceiling on rental apartments to make housing more affordable for low-income families. What is the likely outcome of this intervention in terms of socially optimal output and actual output?

When a local government sets a price ceiling on rental apartments, it means they are limiting how high landlords can charge for rent. This is intended to help low-income families afford housing, but it can lead to some problems. When rents are kept artificially low, landlords may not find it profitable to maintain or even offer their apartments, which can reduce the number of available rentals. As a result, while the intention is to make housing more affordable, the actual output of available apartments might decrease, leading to a shortage. For example, if a landlord usually charges $1,200 but the ceiling is set at $800, they might decide not to rent out their property at all, leaving fewer apartments for families in need.