Economist Dr. Rachel Chen argues that speculation in housing markets should be regulated because housing functions as both investment and basic necessity, creating inherent conflicts.
Which economic analysis would best support Chen's regulation argument?
Housing prices have increased
Cities with high investor ownership saw 30% lower homeownership rates, 25% higher rent burden for low-income families, and housing price volatility that caused economic instability—investment returns came directly at expense of housing access
Some investors buy property
Regulations exist elsewhere
Correct Answer: B
Choice B is the best answer. Quantified negative effects across multiple dimensions proves conflicting-function harm.
💡 Strategy: Regulation arguments need evidence of harm from unregulated activity.