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(A) The number of jobs has been decreasing.

Incorrect. This can be true since the passage presents an either / or condition to explain the decrease in number of homeless families.

(B) The cost of renting or purchasing housing has been decreasing, and housing supply exceeds demand.

Incorrect. This can be true and has been explicitly stated in the passage.

(C) The number of jobs has been increasing, and the cost of renting or purchasing housing has been stable.

Incorrect. This scenario can also be true. The passage states that either the available jobs should go up OR costs should come down. In this statement, this condition is satisfied since the jobs are increasing.

(D) The number of jobs has been decreasing, the cost of renting or purchasing housing has been decreasing, and housing demand exceeds supply.

Correct. This scenario can't be true. The passage states that if costs decrease, then supply MUST outstrip demand. Therefore, this is the correct answer.

(E) The number of jobs has been increasing, the cost of renting or purchasing housing has been increasing, and housing supply exceeds demand.

Incorrect. Again, this statement satisfies the either / or condition. Further, we've not been given any info by the passage on potential reasons for increase in costs. So that bit is irrelevant and can be true.
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My answer is (D).

Assume that there is a decrease in the number of homeless families, then either
(1) the number of available jobs has increased
Or
(2) the cost of renting or purchasing housing has decreased -> the supply of housing must be greater than the demand.

(A) The number of jobs has been decreasing.
a decrease in the number of homeless families is possible thanks to (2)

(B) The cost of renting or purchasing housing has been decreasing, and housing supply exceeds demand.
a decrease in the number of homeless families is possible thanks to (1)

(C) The number of jobs has been increasing, and the cost of renting or purchasing housing has been stable.
a decrease in the number of homeless families is possible thanks to (1)

(D) The number of jobs has been decreasing, the cost of renting or purchasing housing has been decreasing, and housing demand exceeds supply.
a decrease in the number of homeless families is impossible as Neither (A) Nor (B) are met

(E) The number of jobs has been increasing, the cost of renting or purchasing housing has been increasing, and housing supply exceeds demand.
a decrease in the number of homeless families is possible thanks to (1)


Not agree with the fact "the cost of renting or purchasing housing has decreased -> the supply of housing must be greater than the demand."

According to the supply and demand theory if the price decrease quantity of supply also decrease. Please give your logical explanation. Bunuel
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