Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increase) 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, especially 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tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power.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?

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Examsnet · Accepted Answer

Correct Answer is :  In many municipalities there is now, or eventually will be, a shortage of rental units.

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