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# Unless they are used as strictly temporary measures,

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Director
Joined: 05 May 2004
Posts: 574
Location: San Jose, CA
Unless they are used as strictly temporary measures, [#permalink]

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24 Aug 2004, 23:21
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11. 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 â€“smaller rent increasesâ€”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tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short â€“term gain that guides those tenants in the exercise of that power.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?

(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(B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise.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.
Manager
Joined: 02 Jul 2004
Posts: 217
Re: CR 11 Rent Control [#permalink]

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25 Aug 2004, 04:05
srijay007 wrote:
11. 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 â€“smaller rent increasesâ€”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tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short â€“term gain that guides those tenants in the exercise of that power.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?

(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.

Very good question

A: No. The stem says that there can be small increases
B: No. The stem doesn't provide information that rent-control ordinances will be repealed as soon as shortages of rental unites arise
C: No. The question says "One of these..." so there are probably other negative effects
E: No. The problem is the shortage of units itself. The question doesn't go so far as to say that this shortage will result in higher rents
Senior Manager
Joined: 22 Jun 2004
Posts: 391
Location: Bangalore, India
Re: CR 11 Rent Control [#permalink]

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25 Aug 2004, 10:26
I am getting it as E.

I could rule out A,B and C for obvious reasons. I wavered between D & E and picked up E.

I could reject D because the stem says "the controls will bring about a shortage of rental units." and then says 'This disadvantage for renters occurs over the long run'. It means that the author does not say anything about the present condition about the rental units. He only projects the condition of the rental units for the future.

E looks fine because the shortage of rental units is bound to increase the rents.

I await OA keeping my fingers crossed. The studs have opted for D.

srijay007 wrote:
11. 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 â€“smaller rent increasesâ€”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 â€“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?

(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.

_________________

Awaiting response,

Thnx & Rgds,
Chandra

Director
Joined: 13 Nov 2003
Posts: 957
Location: Florida

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25 Aug 2004, 20:17
D.

large renters (more rent) - close shops.
small renters - increase rents

when small renters rent quote reaches the specified limit set by municipality, they will become large renters (more rent). Circular Reasoning. Small renters (now big) will close the shops... ultimatly, shortage of units.
Director
Joined: 05 May 2004
Posts: 574
Location: San Jose, CA

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26 Aug 2004, 00:15
OA is D
Thanks for the explanations
Senior Manager
Joined: 19 Nov 2007
Posts: 457

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16 Jan 2009, 21:30
srijay007 wrote:
OA is D
Thanks for the explanations

Doesn't D depend on an assumption that rent control ordinances are already enacted or will be enacted?
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VP
Joined: 05 Jul 2008
Posts: 1401

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17 Jan 2009, 11:31
vscid wrote:
srijay007 wrote:
OA is D
Thanks for the explanations

Doesn't D depend on an assumption that rent control ordinances are already enacted or will be enacted?

yes, it does need that assumption and I took it out for the same reason. I chose E as well.
Re: Re:   [#permalink] 17 Jan 2009, 11:31
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# Unless they are used as strictly temporary measures,

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