Last visit was: 15 Jul 2024, 13:20 It is currently 15 Jul 2024, 13:20
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Alum
Joined: 19 Mar 2012
Posts: 4331
Own Kudos [?]: 51683 [60]
Given Kudos: 2326
Location: United States (WA)
Concentration: Leadership, General Management
Schools: Ross '20 (M)
GMAT 1: 760 Q50 V42
GMAT 2: 740 Q49 V42 (Online)
GMAT 3: 760 Q50 V42 (Online)
GPA: 3.8
WE:Marketing (Non-Profit and Government)
Send PM
Most Helpful Reply
User avatar
Retired Moderator
Joined: 06 Jul 2014
Posts: 1005
Own Kudos [?]: 6384 [19]
Given Kudos: 178
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
GMAT 2: 740 Q50 V40
Send PM
User avatar
Manager
Manager
Joined: 21 Sep 2014
Status:Birds fly because they have wings, not because they have sky.
Posts: 206
Own Kudos [?]: 120 [7]
Given Kudos: 73
Location: Singapore
Concentration: Strategy, Technology
GMAT 1: 740 Q50 V40
GPA: 3.65
WE:Information Technology (Consulting)
Send PM
General Discussion
avatar
Manager
Manager
Joined: 27 Dec 2013
Posts: 164
Own Kudos [?]: 127 [1]
Given Kudos: 113
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
1
Kudos
Tough call between B and C. Will go with C.

souvik101990 wrote:
An industry analyst asserted in his recent report that the relative scarcity of housing in a particular market leads to larger than normal increases in price. During the late 1990s, according to the analyst's report, occupancy rates-a measure of the percentage of housing occupied at a given time-in crowded urban markets such as New York and San Francisco hovered around 99.5%. During the same period, housing prices increased by as much as 100% per year, compared to more normal past increases in the range of 5% to 15% per year. Which of the following is an assumption that supports the analyst's assertion?

A. In the housing market, there generally must be at least five buyers per seller in order to cause larger than normal increases in price.

B. Increases in demand often reflect an influx of new buyers into the marketplace or an unusual increase in buying power on the part of the customer.

C. The U.S. housing market showed a larger than average increase in the 1990s across the country, not just in crowded urban areas.

D. Price increases do not cause people to withhold their houses from the market in the hopes that prices will increase even further in the future.

E. A significant rise in housing prices in a specific area may cause some potential buyers to relocate to other, less pricey areas.
avatar
Intern
Intern
Joined: 02 Jan 2014
Posts: 30
Own Kudos [?]: 37 [2]
Given Kudos: 75
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
2
Kudos
I posted answer to this question yesterday , but I do not see my post. :(
avatar
Intern
Intern
Joined: 25 May 2014
Posts: 26
Own Kudos [?]: 146 [0]
Given Kudos: 59
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
Can someone explain why C is wrong here ?
OA is D
Alum
Joined: 19 Mar 2012
Posts: 4331
Own Kudos [?]: 51683 [1]
Given Kudos: 2326
Location: United States (WA)
Concentration: Leadership, General Management
Schools: Ross '20 (M)
GMAT 1: 760 Q50 V42
GMAT 2: 740 Q49 V42 (Online)
GMAT 3: 760 Q50 V42 (Online)
GPA: 3.8
WE:Marketing (Non-Profit and Government)
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
1
Bookmarks
Expert Reply
The question stem asks you to determine the answer choice that damages the city council's plan. Since the conclusion states that the city's finances are not negatively affected, we know that in the right answer, the city's finances MUST be negatively affected in some way. This is seen in 'C'. So you have to look at the conclusion.
Manager
Manager
Joined: 22 Sep 2018
Posts: 191
Own Kudos [?]: 180 [2]
Given Kudos: 78
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
2
Kudos
souvik101990 wrote:
An industry analyst asserted in his recent report that the relative scarcity of housing in a particular market leads to larger than normal increases in price. During the late 1990s, according to the analyst's report, occupancy rates-a measure of the percentage of housing occupied at a given time-in crowded urban markets such as New York and San Francisco hovered around 99.5%. During the same period, housing prices increased by as much as 100% per year, compared to more normal past increases in the range of 5% to 15% per year. Which of the following is an assumption that supports the analyst's assertion?

A. In the housing market, there generally must be at least five buyers per seller in order to cause larger than normal increases in price.

B. Increases in demand often reflect an influx of new buyers into the marketplace or an unusual increase in buying power on the part of the customer.

C. The U.S. housing market showed a larger than average increase in the 1990s across the country, not just in crowded urban areas.

D. Price increases do not cause people to withhold their houses from the market in the hopes that prices will increase even further in the future.

E. A significant rise in housing prices in a specific area may cause some potential buyers to relocate to other, less pricey areas.


TOUGH question, it really makes you think.

A) not sure how this is relevant
B) this is simply a definition of demand. This does not help our argument.
C) We're talking about particular markets not the entire housing market.
D) CORRECT. The issue in the stem is whether it is truly a scarcity that is causing the price to increase. What if there wasn't a scarcity of housing and home owners were just unwilling to sell that caused the supply to drop and the price to increase? This answers that concern.
E) irrelevant
Intern
Intern
Joined: 27 Oct 2018
Posts: 27
Own Kudos [?]: 6 [0]
Given Kudos: 1
GMAT 1: 750 Q49 V42
GPA: 3.9
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
This one is really tough, it took me quit a while. A didn’t take long to eliminate, of course, since it is completely irrelevant. B isn’t an assumption at all, its just the definition of demand. C introduces additional information, we are not talking about the US housing market. E is also irrelevant. So, D is the correct answer. The weakness in the original argument is that there is another reason, besides scarcity, that could cause the price increase. People might just not be selling their houses. D, however, tells us that is not the case. This removes a potential ambiguity.
Intern
Intern
Joined: 28 Jan 2019
Posts: 5
Own Kudos [?]: 0 [0]
Given Kudos: 134
Location: India
Concentration: Entrepreneurship, Technology
GMAT 1: 680 Q50 V31 (Online)
GMAT 2: 710 Q48 V39 (Online)
WE:Marketing (Advertising and PR)
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
Analyst assumes scarcity as the cause of price increases of properties but for this to happen one of the assumptions can be that people are not intentionally occupying the properties to boost up the prices higher that is assumption is effect is not leading to the cause and hence option D is correct
User avatar
Non-Human User
Joined: 01 Oct 2013
Posts: 17502
Own Kudos [?]: 868 [0]
Given Kudos: 0
Send PM
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
Re: An industry analyst asserted in his recent report that the relative sc [#permalink]
Moderators:
GMAT Club Verbal Expert
6981 posts
GMAT Club Verbal Expert
236 posts
CR Forum Moderator
824 posts