Unless they are used as strictly temporary measures, rent-control

Question

Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power.

If the statements above are true, which one of the following can be properly inferred from them?

If the statements above are true, which one of the following can be properly inferred from them?

(A) It is impossible for landlords to raise rents when rent controls are in effect
(B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise
(C) The only negative effect of tent control for renters is that it brings about a shortage of rental units
(D) In many municipalities there is now, or eventually will be, a shortage of rental units
(E) In the long term, a shortage of rental units will raise rents substantially

sayiurway · Answer

In answer D, "In many municipalities there is now, or eventually will be, a shortage of rental units"

I agree that we can infer there WILL BE a shortage of rental units based on "One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters  occurs over the long run "

But how can we infer that a shortage of units is happening NOW?

I opted for answer E. Is this incorrect because of the adverb "subtantially"?

Can any expert elaborate on this question?

Tks you

Diya52 · Answer

I was confused between B, D and E. Can someone please explain?

PTD1995 · Answer

All that we know is that the landlords cannot increase over a maximum amount; until that maximum they can increase it. Hence, incorrect. There's not any clue that would lead to this kind of reasoning. Incorrect. "One of these is that the controls will bring about a shortage of rental units". This does not mean it is the only one. Correct! If the rent-control ordinances are enacted forever, then there's not any possibility for the landlords to increase the rents. Thus, incorrect. DiyaDutta here you go

auradediligodo · Answer

I believe   Option D    to be the correct one as we are given that the short term gain is what is important to tenants. So the long terms disadvantages will appear sooner or later.

A  is too extreme.  B  Does not have to be true.  C  is contradicted in the argument.  E  describes a cause-effect relation that cannot be inferred from the information given

VerbalBot · Answer

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Unless they are used as strictly temporary measures, rent-control

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Unless they are used as strictly temporary measures, rent-control

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