Final answer:
The discussed statement highlights how demand surpassing supply in apartment housing leads to shortages, which could be resolved by letting prices rise, highlighting the irony of rent control laws that can limit the number of available rental units.
Step-by-step explanation:
The statement "Demand exceeds the available quantity of apartment housing. If the price of apartment rentals were increased, demand would decrease and an equilibrium could be achieved," refers to the basic economic principle of supply and demand. When rent control keeps prices artificially low at $500, the quantity of rental units supplied remains at 15,000 units, but the quantity demanded rises to 19,000 units, causing a shortage. Without rent control, the market rent would rise to $600, increasing the equilibrium quantity to 17,000 rental units and hence reducing the shortage. The irony is that rent control, meant to make housing affordable, actually leads to fewer apartments being available than at market rate rents.