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In the last year, real estate prices, such as those for

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Joined: 14 Feb 2012
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Location: Germany
Concentration: Technology, Strategy
GMAT Date: 06-13-2012
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Kudos [?]: 10 [3] , given: 13

In the last year, real estate prices, such as those for [#permalink] New post 07 Apr 2012, 10:25
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Question Stats:

54% (02:35) correct 45% (02:47) wrong based on 133 sessions
In the last year, real estate prices, such as those for houses and condominiums, have gone up an average of 7% in the city of Galway but only 2% in the town of Tuam. On the other hand, average rents for apartments have risen 8% in Tuam over the last year, but only 4% in Galway.

Which of the following is an inference that can be reasonably drawn from the prem- ises given above?

(A) In the last year, the ratio of average apartment rents to average real estate prices has increased in Tuam but fallen in Galway.
(B) Tuam has experienced a greater shift in demand toward the rental market than Galway has.
(C) It has become easier for Galway real estate to be bought and sold, whereas it has become easier for Tuam real estate to be rented.
(D)The supply of rental apartment units has decreased more in Tuam than in Galway.
(E) The average amount spent on housing is higher in Galway than it is in Tuam.

Can anybody help me with this question please, thanks!
[Reveal] Spoiler: OA
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Joined: 19 Mar 2012
Posts: 173
Location: United States
Concentration: Finance, General Management
GMAT 1: 750 Q50 V42
GPA: 3.69
WE: Analyst (Mutual Funds and Brokerage)
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Kudos [?]: 20 [0], given: 13

Re: In the last year, real estate prices, such as those for ... [#permalink] New post 07 Apr 2012, 10:52
andih wrote:
In the last year, real estate prices, such as those for houses and condominiums, have gone up an average of 7% in the city of Galway but only 2% in the town of Tuam. On the other hand, average rents for apartments have risen 8% in Tuam over the last year, but only 4% in Galway.

Which of the following is an inference that can be reasonably drawn from the prem- ises given above?

(A) In the last year, the ratio of average apartment rents to average real estate prices has increased in Tuam but fallen in Galway.
(B) Tuam has experienced a greater shift in demand toward the rental market than Galway has.
(C) It has become easier for Galway real estate to be bought and sold, whereas it has become easier for Tuam real estate to be rented.
(D)The supply of rental apartment units has decreased more in Tuam than in Galway.
(E) The average amount spent on housing is higher in Galway than it is in Tuam.

Can anybody help me with this question please, thanks!


(A) Correct: You can see the ratio for Tuam is 8/2 but for Galway its 4/7
(B) There is nothing in the passage that is evidence of greater demand.
(C) Nothing in the passage that talks about ease of rent
(D) There is no information that points to evidence of supply
(E) For all we know, Tuam houses could have been $100 but growing slowly while Galway houses could have been $1 but growing fast.

Important to stay within the context of the passage, we don't want to make any assumptions.
Intern
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Joined: 14 Feb 2012
Posts: 40
Location: Germany
Concentration: Technology, Strategy
GMAT Date: 06-13-2012
Followers: 0

Kudos [?]: 10 [0], given: 13

Re: In the last year, real estate prices, such as those for ... [#permalink] New post 07 Apr 2012, 11:33
Swoosh617 wrote:
andih wrote:
In the last year, real estate prices, such as those for houses and condominiums, have gone up an average of 7% in the city of Galway but only 2% in the town of Tuam. On the other hand, average rents for apartments have risen 8% in Tuam over the last year, but only 4% in Galway.

Which of the following is an inference that can be reasonably drawn from the prem- ises given above?

(A) In the last year, the ratio of average apartment rents to average real estate prices has increased in Tuam but fallen in Galway.
(B) Tuam has experienced a greater shift in demand toward the rental market than Galway has.
(C) It has become easier for Galway real estate to be bought and sold, whereas it has become easier for Tuam real estate to be rented.
(D)The supply of rental apartment units has decreased more in Tuam than in Galway.
(E) The average amount spent on housing is higher in Galway than it is in Tuam.

Can anybody help me with this question please, thanks!


(A) Correct: You can see the ratio for Tuam is 8/2 but for Galway its 4/7
(B) There is nothing in the passage that is evidence of greater demand.
(C) Nothing in the passage that talks about ease of rent
(D) There is no information that points to evidence of supply
(E) For all we know, Tuam houses could have been $100 but growing slowly while Galway houses could have been $1 but growing fast.

Important to stay within the context of the passage, we don't want to make any assumptions.


First of all, thanks for the reply!

The Problem I had with A was that I thought there have to be some other numbers from another year so I can see how they de- or increased. I see, though, that all the other choices are wrong.
Intern
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Joined: 31 Mar 2012
Posts: 9
Location: France
Concentration: International Business
Schools: HEC '15
GMAT 1: 420 Q V
Followers: 0

Kudos [?]: 9 [0], given: 2

Re: In the last year, real estate prices, such as those for ... [#permalink] New post 07 Apr 2012, 15:32
Prices or other amounts changing is often a GMAT trick question. You assume that because rents go up in
city A that A will become more expensive than city B. Problem is you are never given the whole amount
of A and B. So, even if rents go up in A, it could still be cheaper than in B.
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Our constraints are what define us. Work hard and never give up.

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Kudos [?]: 41 [0], given: 0

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Re: In the last year, real estate prices, such as those for [#permalink] New post 18 Nov 2013, 10:45
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: In the last year, real estate prices, such as those for   [#permalink] 18 Nov 2013, 10:45
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