Answer: True
Rent control is indeed an example of a price floor. A price floor is a minimum price set by the government that prevents prices from falling below a specified level. In the case of rent control, the government places a limit on how low landlords can charge for rental housing. This is intended to keep housing affordable for tenants, particularly in areas where rental costs are rapidly rising.
However, while rent control aims to protect tenants, it can have unintended consequences. By setting a price floor that is often below the market equilibrium, it can lead to a shortage of available rental units. Landlords may be discouraged from maintaining or improving their properties, and potential new investors might refrain from entering the market due to the capped rental income. This creates an imbalance in the supply and demand for rental properties, demonstrating both the intent and the complications of implementing a price floor like rent control.