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Chapter 4: Problem 6

James lives in a rent-controlled apartment and has for the past few weeks been trying to get the supervisor to fix his shower. What does waiting to get one's shower fixed have to do with a rent-controlled apartment?

Short Answer

Expert verified
The delay in getting one's shower fixed in a rent-controlled apartment can be due to the fact that the landlord, who cannot increase rent to potentially cover the cost of improvements or repairs, may have less economic incentive to promptly address these issues. This could be the situation James is experiencing with his shower repair.

Step by step solution

01

Understanding Rent Control

Understand the term 'Rent-Controlled Apartment'. Rent control is a government regulation that prevents landlords from raising the rent above a certain amount. This can lead to a reduced incentive for the landlord to maintain and improve the property.
02

Linking Rent Control to Maintenance Delay

Understand how rent control affects the landlord's incentive for maintenance. Because the landlord can't increase the rent, they might feel less obligated or less economically motivated to promptly address maintenance issues that arise. Instead, they may prioritize issues that have more financial benefit to them.
03

Assessing the Situation with James' Shower

Link the understanding of rent control and its effects on landlord responsiveness to the situation with James. James' supervisor may be delaying the shower repair because there is no financial incentive to carry out the repair quickly. Without the ability to increase rent, the supervisor may endure the cost, which is not economically beneficial.

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