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30 Aug 2020, 04:53
Kudos
Bookmarks
egmat Please help as to why Option D is correct but Option E is not
15 Sep 2020, 00:19
Kudos
Bookmarks
Mayankcadbury
Hi Mayank
Let us analyze the conclusion and the premises:
Conclusion: ...this law has had little or no effect on the sale of newly constructed homes.
Premise: ...since the law was passed, the growth in sales of newly constructed homes has dropped each year, from 15% to 10% to 5%.
We are drawing the conclusion of no effect of the law based on the fact that growth rate of new home sales have been dropping. Obviously, this can only be true if the law has not prevented an even steeper fall in the growth rates, which is brought out by option (D), which is the correct answer.
Option (E) states that such laws are anyway ineffective in influencing consumer decisions. If this is true, then we do not need the premise of falling growth rates to draw the conclusion. In other words, option (E) is not necessary to be true for this premise to lead to this conclusion.
Another test would be to negate option (E): Tax credits for specific purchases are usually effective in influencing consumers to make those purchases.
This does not negate the conclusion that the law has had no effect, since the growth rates have been falling. Therefore, option (E) cannot be an underlying assumption for this argument.
Hope this clarifies.
07 Aug 2024, 23:03
Kudos
Bookmarks
My line of reasoning for why all options are incorrect apart from D-
Conclusion:: Obviously, this law has had little or no effect on the sale of newly constructed homes.
Premise:: A law passed in Rockville three years ago allows a 30% tax credit to consumers who purchase a newly constructed home. The tax credit was intended to stimulate the local economy by creating a higher demand for new houses and spurring the creation of jobs in construction and design.
A- Out of scope. Relating unrelated components
B- Out of scope
C- Irrelevant
D- Correct, as the tax credit was implemented to boost the economy
E- Undermines the conclusion
Conclusion:: Obviously, this law has had little or no effect on the sale of newly constructed homes.
Premise:: A law passed in Rockville three years ago allows a 30% tax credit to consumers who purchase a newly constructed home. The tax credit was intended to stimulate the local economy by creating a higher demand for new houses and spurring the creation of jobs in construction and design.
A- Out of scope. Relating unrelated components
B- Out of scope
C- Irrelevant
D- Correct, as the tax credit was implemented to boost the economy
E- Undermines the conclusion
