A luxury apartment condo recently opened up along the Biltmores water

Question

A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.

Which of the following, if true, would argue against the proposal above?

(A) Typically, the very first unit to sell in a luxury condo is a standard unit.

(B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.

(C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.

(D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.

(E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.

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hr1212 · Answer

Luxury condo - Standard units (10 stories) + Penthouses(2 stories)
Standard units (10 stories) => 80% sold
Penthouses(2 stories) => 2/8 = 25% sold

Reason assumed by the author for lower penthouses sales is price and hence recommends to reduce the price by 20%

Weaken?

(A) Typically, the very first unit to sell in a luxury condo is a standard unit.   Fine, but still author's point may be valid as at best this statement seems neutral
 
 (B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.   Strengthens author's point by pointing out that sales would be tough with upcoming recession with the assigned price range

(C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.   Strengthens giving another reason for these penthouses not having lucrative view

(D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.   Weakens the argument, by opposing author's assumption that price is the limiting factor whereas sales of these penthouses are pending with the management who are being meticulous with their selection

(E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.   Seems neutral

IMO: D

bhargavhhhhhhhh · Answer

Breaking Down the Question 
The proposal suggests dropping the price of penthouses by 20% to sell the remaining six units. 
We need to identify a statement that argues against this proposal, meaning it provides evidence that the discount might not be necessary or effective.

Analyzing the Options 
(A) Typically, the very first unit to sell in a luxury condo is a standard unit. 
- Irrelevant. This gives no information about the demand or pricing of penthouses. 
- Eliminate.

(B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery. 
- Supports the proposal. If the economy is weak, lowering prices might attract buyers. 
- Eliminate.

(C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront. 
- Suggests location, not price, might be the issue. Doesn't argue against a discount. 
- Eliminate.

(D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories. 
- Argues against the proposal. If there’s strong demand, a discount may be unnecessary. 
- Keep.

(E) After the proposed discount each penthouse will only be 15% more costly than a standard unit. 
- Supports the proposal. It suggests the discount might make penthouses more competitive. 
- Eliminate.

Correct Answer: (D) 
Strong demand implies no need for a price reduction.

Whoisdmx15 · Answer

(A) Typically, the very first unit to sell in a luxury condo is a standard unit.  Eliminated  Does not strengthen or weaken the conclusion, as we need selling of all the penthouses.

(B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.  Eliminated  This in a way strengthens the conclusion, as a recession will infer reduction in purchasing power, and hence it would make sense to offload a depreciating asset as soon as possible, even at lower prices.

(C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.  Eliminated  Does not strengthen or weaken the conclusion, no preference to waterfront has been indicated in the passage or can be inferred.

(D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.  Suitable  This weakens the argument the most, as this will entail that there is no reason or justification of bringing down the costs in a market of high demand and low supply.

(E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.  Eliminated  This strengthens the conclusion a little bit, as it encourages the fact that at least a few of the condo buyers, who have cost elasticity will consider buying the 15% pricier pent house.

VivekSri · Answer

What is the argument ? The corporation that owns the property, should drop the rate of the penthouses by 20%.
 Reason: In order to sell the remaining six penthouses.

Now here the important thing to understand that it is telling that it is just one factor which is determining the sale of penthouse and that is rate of the penthouse, and corporation should decrease it in order to sell the penthouse.

In these type of question we have to find a way that in which we find one more factor which is also contributing to it and that's the most important reason of that and not the reason in the argument. In order to go against it.

Take an example: It is raining outside, and I want to go outside.
If some one says that I am not going outside because it is raining. What if the reason if I am not going outside because I don't have raincoat. This will go against the argument.

Now let us take the options, Only Option A and D is going somewhat in this direction. Remaining, all are going in the same direction of argument.

Then why D? D is saying that it is not about the rate rather the credit histories is what that matters. So, rate is not the criteria here. This is our correct answer.

Why not A? A is stating the fact the very first unit to sell in a luxury condo is a standard unit. But what about the penthouse , no information. Will the rate has any say in this. I guess no. So A is not our answer.

Option D is the ans

Bunuel · Answer

Official Explanation

Premise #1  – Most of the standard units have sold.

Premise #2  – Only two of the eight penthouses have sold.

Conclusion : Drop the price of the penthouses.

(A) That the first unit to sell in a luxury condo is usually a standard unit doesn’t relate to the specific issue here. Also, presumably most condos have more standard units than penthouse suites, so it makes sense that those would sell first. We don’t know anything about when the first penthouse is sold. Had (A) been something like, “The last units to sell in a luxury condo are typically the penthouses”, then it would be the answer.

(B) implies that the plan would work. We want a weakener.

(C) is wrong since we don’t know anything about the difference between non-waterfront and waterfront units. Maybe, the former are larger and nicer.

(D) gives us a compelling reason why the penthouses have yet to sell. Management has so many applications that they are sorting through since demand for the penthouses is so high. Therefore, dropping the price by 20% would be a very bad idea.

(E) suggests that dropping the price 20% might be selling the penthouses short, so to speak. But it does not give us a clear reason that dropping the price 20% would actually be a very bad idea the way that (D) does. See, giving a discount on the penthouses and then getting buyers is much better than already having many interested buyers and then giving a discount.

VerbalBot · Answer

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A luxury apartment condo recently opened up along the Biltmores water

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