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Price serves as a rationing device. Suppliers must determine to whom their production will be

distributed. In a free market economy, this is accomplished through the price mechanism. Those

who are willing and able to purchase the product will receive the product. Rent controls reduce

the ability of landlords to distribute housing services based solely on price. Therefore, they can

resort to other mechanisms, such as bribery and favoritism. Unfortunately, some will resort to

using racial or age discrimination as the rationing mechanism.

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Q: Why would rent controls result in higher incidence of racial or age discrimination?
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