Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that a below-equilibrium price established by rent control: creates a surplus of rental housing. O promotes a rapid increase in the future supply of housing. O results in poor service and quality deterioration of many rental units. O leads to a reduction in housing discrimination against minorities.

A rent control set below the equilibrium price in the rental housing market leads to poor services and quality deterioration of many of the private rental units. Hence, in this case, the correct answer is the third option mentioned among the answer choices.

Explanation:

A rent control that is stipulated below the equilibrium price in the rental housing market essentially leads to the shortage of adequate rental units in the market as the market price or rent stipulated under the rent control is too low for the providers or landlords of the private rental units to offer adequate number of units as per the demand from the renters. A considerably low rent or rental prices of the existing rental units often entails poor maintenance of the rental units, unsatisfactory rental or housing services and deterioration in the interior quality and conditions of most of the rental units. Therefore, the existing renters or inhabitants might enjoy lower rental price or rent but often suffer from poor maintenance, low quality rental services and lack of adequate rental infrastructure inside the rental units.