LSAT 151 – Section 4 – Question 06

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Curve Question
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Explanation
PT151 S4 Q06
+LR
+Exp
Resolve reconcile or explain +RRE
Causal Reasoning +CausR
Net Effect +NetEff
A
4%
155
B
3%
155
C
2%
158
D
4%
155
E
87%
163
134
144
153
+Medium 145.196 +SubsectionEasier

The construction of new apartments in Brewsterville increased the supply of available housing there. Ordinarily, increasing the supply of available housing leads to lower rents for existing apartments. But in Brewsterville, rents for existing apartments rose.

"Surprising" Phenomenon
Increased housing supply generally leads to lower rents for existing apartments, but rents for existing apartments in Brewsterville rose when the housing supply increased.

Objective
The correct answer will be a hypothesis that explains why, contrary to what usually happens, existing apartments became more expensive when the housing supply increased. This explanation must show some quirk in Brewsterville’s housing situation that causes rents to rise with supply, or else some other factor that affected the prices of existing apartments without factoring in housing supply.

A
Fewer new apartments were constructed than originally planned.
Even if just one new apartment was constructed, existing rents would be expected to drop. We need to know why they rose.
B
The new apartments were much more desirable than the existing apartments.
The new apartments, no matter how desirable, contributed to the housing supply. And yet, rents for existing apartments rose. We need something that explains why that happened.
C
Rents in some areas close to Brewsterville dropped as a result of the construction of the new apartments.
We care about what happened in Brewsterville, not in areas close-by.
D
A sizeable number of people moved out of the existing apartments while the new apartments were being constructed.
Does this mean the rents would rise? We don’t know. This doesn’t give us enough information to be a true explanation.
E
The new apartments were constructed at the outset of a trend of increasing numbers of people seeking residence in Brewsterville.
Even though the housing supply rose, that housing supply was quickly filled by people moving into Brewsterville. The end result was either a net neutral or net negative for the housing supply, hence why rents didn’t drop as expected for existing apartments.

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