by harpreet1205 Thu Oct 03, 2013 7:45 am
Recently in City X, developers have stopped buying land, contractors have found themselves going without work
for longer periods, and banks have issued fewer mortgages. There must be fewer new residents moving to City X
than there were previously. Which of the following indicates a flaw in the reasoning above?
- This year several housing blocks have gone on the market after being held up for months by legal red tape.
- The average size of a new home has increased significantly over the past several years.
- Re-sales of condominiums have increased over the past six months.
- The cost of materials such as lumber and cement has decreased over the past year.
- Sales of other big-ticket items, such as automobiles and boats, has remained steady over the past year.
Hey Ron,
I was stuck between A and C
But then I chose C whereas the answer is A.
The reasoning process that I applied goes on like this.
Since developers are not buying land, contractors are without work....etc so the reason must be fewer new residents moving to City X.
(According to choice C) So if condominiums are being re-sold then there is a possibility that newer residents are coming to the city
whereas in A it says that housing blocks that were held earlier are released. Now though housing blocks have been released one can not be sure whether some one is buying or not. Therefore we cannot say that there will be fewer residents moving to the city(it may be the case or it may not be)
Please help clarify what is the mistake that I am committing and why is 'A' a better choice?