In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords from gaining at the expense of tenants : the allocative function of prices is impaired. -- it prevents landlords from gaining at the expense of tenants : the allocative function of prices is NOT impaired. -- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is impaired-- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is NOT impaired