GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Aug 2018, 03:56

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Two years ago, after witnessing several consecutive years of excessive

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
S
Joined: 16 May 2016
Posts: 130
Location: India
Concentration: Marketing, Healthcare
GPA: 3
WE: Analyst (Computer Software)
CAT Tests
Two years ago, after witnessing several consecutive years of excessive  [#permalink]

Show Tags

New post 02 Aug 2018, 04:44
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

83% (01:21) correct 17% (01:39) wrong based on 64 sessions

HideShow timer Statistics

Two years ago, after witnessing several consecutive years of excessive rent increases in the city and continual protests about the same, the city of Raylayer decided to fix an upper limit on these increases. Since then the landlords have not been able to increase the rent amounts substantially, but on an average the total amount people have been spending to rent similar accommodation has increased at a rate much higher than the increase in the rents.

Which of the following, it true, most helps to explain why the rent cap did not achieve its goal?


A. The demand for independent houses, houses that are typically rented at a much higher rate than apartments in a multi-storeyed buildings, has not gone down in the past two years.

B. Landlords have the liberty to hike maintenance charges, charges not limited by the ceiling on the rent.

C. Seven years ago, a similar rent ceiling program was implemented in Raylayer, but it was subsequently cancelled because of the frequent protests by different associations that protect the interest of landlords in Raylayer.

D. Raylayer is one of the most expensive cities to live in the country.

E. The overall demand for rented accommodation in Raylayer has been at an all-time low since many people decided to move to nearby cities two years ago when the city faced excessive hikes in rents.

_________________

Not Giving UP! Kudos if you like the question :)

RC Moderator
User avatar
G
Status: Perfecting myself for GMAT
Joined: 22 May 2017
Posts: 436
Concentration: Nonprofit
Schools: Haas '21
GPA: 4
WE: Engineering (Computer Software)
GMAT ToolKit User Premium Member CAT Tests
Two years ago, after witnessing several consecutive years of excessive  [#permalink]

Show Tags

New post 02 Aug 2018, 05:41
Prethinking : The city has set an upper limit on the rent increases. Since then the landlords have not been able to increase the rent amounts substantially. Since the landlords cannot increase the rent, they might have increase other charges associated with the rent such as maintenance charge, parking charge etc which might have increased the average amount of renting the houses.

A. The demand for independent houses, houses that are typically rented at a much higher rate than apartments in a multi-storeyed buildings, has not gone down in the past two years.

This option talks specifically about the independent houses and doesn't explain why the rent has not succeeded in achieving its goal. We also don't know how many independent houses are there in the city. INCORRECT

B. Landlords have the liberty to hike maintenance charges, charges not limited by the ceiling on the rent.

This option explains the reason why the average amount to rent houses in the city has not decreases. Since the landlords cannot increase the rent as there is a rent cap, they increased the rent associated charges which explain why the rent cap was not successful.

C. Seven years ago, a similar rent ceiling program was implemented in Raylayer, but it was subsequently cancelled because of the frequent protests by different associations that protect the interest of landlords in Raylayer.

This option provides information about a past rent cap plan and has nothing to do with current plan or why the current plan failed. INCORRECT

D. Raylayer is one of the most expensive cities to live in the country.

Irrelevant information and doesn't explain why the rent cap has failed to control the increasing rental charges in the city. INCORRECT

E. The overall demand for rented accommodation in Raylayer has been at an all-time low since many people decided to move to nearby cities two years ago when the city faced excessive hikes in rents.

This goes against why the rent cap system has failed. If this option was true, the rent cap plan should've been successful in limiting the charges. INCORRECT

Hence option B
_________________

If you like my post press kudos +1

New - RC Butler - 2 RC's everyday

Tag me in RC questions if you need help. Please provide your analysis of the question in the post along with the tag.

Manager
Manager
User avatar
B
Joined: 01 Feb 2018
Posts: 50
Location: India
Concentration: Entrepreneurship, Marketing
GPA: 4
WE: Consulting (Consulting)
Re: Two years ago, after witnessing several consecutive years of excessive  [#permalink]

Show Tags

New post 07 Aug 2018, 09:25
Cbirole wrote:
Two years ago, after witnessing several consecutive years of excessive rent increases in the city and continual protests about the same, the city of Raylayer decided to fix an upper limit on these increases. Since then the landlords have not been able to increase the rent amounts substantially, but on an average the total amount people have been spending to rent similar accommodation has increased at a rate much higher than the increase in the rents.

Which of the following, it true, most helps to explain why the rent cap did not achieve its goal?


A. The demand for independent houses, houses that are typically rented at a much higher rate than apartments in a multi-storeyed buildings, has not gone down in the past two years.

B. Landlords have the liberty to hike maintenance charges, charges not limited by the ceiling on the rent.

C. Seven years ago, a similar rent ceiling program was implemented in Raylayer, but it was subsequently cancelled because of the frequent protests by different associations that protect the interest of landlords in Raylayer.

D. Raylayer is one of the most expensive cities to live in the country.

E. The overall demand for rented accommodation in Raylayer has been at an all-time low since many people decided to move to nearby cities two years ago when the city faced excessive hikes in rents.




little prethinking with experience of staying in rented accomodation solves easily.
Re: Two years ago, after witnessing several consecutive years of excessive &nbs [#permalink] 07 Aug 2018, 09:25
Display posts from previous: Sort by

Two years ago, after witnessing several consecutive years of excessive

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: GMATNinja, GMATNinjaTwo

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.