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# In area that is both agricultural and residential in nature

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Senior Manager
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In area that is both agricultural and residential in nature  [#permalink]

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23 Mar 2014, 13:13
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4
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Difficulty:

55% (hard)

Question Stats:

70% (02:24) correct 30% (02:37) wrong based on 351 sessions

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In an area that is both agricultural and residential in nature, nursery owners involved in the growing of decorative garden trees and plants complained to authorities of an average decline of approximately 25% in profits caused by a lack of water which resulted in irrigation problems, and the consequent loss of merchandise. To provide assistance to the nursery owners, the authorities plan to induce water rations upon residents in the area since if less water is used by the residents, more will be available to the nursery owners.

Which of the following points to the most serious logical flaw in the plan devised by the authorities?

A) Since the rationing of water by residents will result in lower payments for water by residents to the authorities, the plan will most likely be detrimental to the revenue earned by the local government for such services.
B) By punishing the residents for financial difficulties experienced by agricultural business owners, the authorities risk harming the way they are perceived by the residential population, affecting future endeavours.
C) It is not probable that 100% of the 25% decline in the profits earned by the nursery owners was a direct result of the irrigation problems and the damage caused to the merchandise by them
D) Because most of the residents in the area are not homeowners, but instead rent their apartments, the water rations, creating the need to save water, will give rise to the infrequent cleaning of apartments and buildings, lowering the market value of the area's residential properties.
E) The introduction of water rationing to the area will improve the status of the nurseries' goods at the expense of the revenues they earn since, due to the need for irrigation entailed in the care of such products, residents will cease to purchase garden plants.

OE:
Answer choice (E) tells that the rationing could also directly affect the revenues earned by the nursery owners.
If residents need to cut down on water usage, they will probably stop watering their gardens, and even more likely, not want to purchase additional plants.

Hi, I am not fully convinced with the OE. Can anyone explain this for me, please.
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Joined: 25 Feb 2014
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Re: In area that is both agricultural and residential in nature  [#permalink]

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24 Mar 2014, 13:35
Since nursery owners profits are down they need assistance. For this the plan is less water for residents therefore more water for nursery owners(NOs). Now ask yourself how could this plan fail to achieve its goal which is to provide assistance to NOs so that their profits are up. Only option D fits here.
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Re: In area that is both agricultural and residential in nature  [#permalink]

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24 Mar 2014, 16:05
goodyear2013 wrote:
In an area that is both agricultural and residential in nature, nursery owners involved in the growing of decorative garden trees and plants complained to authorities of an average decline of approximately 25% in profits caused by a lack of water which resulted in irrigation problems, and the consequent loss of merchandise. To provide assistance to the nursery owners, the authorities plan to induce water rations upon residents in the area since if less water is used by the residents, more will be available to the nursery owners.

Which of the following points to the most serious logical flaw in the plan devised by the authorities?

A) Since the rationing of water by residents will result in lower payments for water by residents to the authorities, the plan will most likely be detrimental to the revenue earned by the local government for such services.
B) By punishing the residents for financial difficulties experienced by agricultural business owners, the authorities risk harming the way they are perceived by the residential population, affecting future endeavours.
C) It is not probable that 100% of the 25% decline in the profits earned by the nursery owners was a direct result of the irrigation problems and the damage caused to the merchandise by them
D) Because most of the residents in the area are not homeowners, but instead rent their apartments, the water rations, creating the need to save water, will give rise to the infrequent cleaning of apartments and buildings, lowering the market value of the area's residential properties.
E) The introduction of water rationing to the area will improve the status of the nurseries' goods at the expense of the revenues they earn since, due to the need for irrigation entailed in the care of such products, residents will cease to purchase garden plants.

OE:
Answer choice (E) tells that the rationing could also directly affect the revenues earned by the nursery owners.
If residents need to cut down on water usage, they will probably stop watering their gardens, and even more likely, not want to purchase additional plants.

Hi, I am not fully convinced with the OE. Can anyone explain this for me, please.

Stmt E tells us that residents will stop buying garden plant( this was the source of revenue for authority) because of rationing. So giving benefit to nursery will not be fruitful in terms of revenue as revenue may still decrease due to lack of purchase of garden plants. That the logical flaw is the plan

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Re: In area that is both agricultural and residential in nature  [#permalink]

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11 Jan 2016, 11:17
1
goodyear2013 wrote:
In an area that is both agricultural and residential in nature, nursery owners involved in the growing of decorative garden trees and plants complained to authorities of an average decline of approximately 25% in profits caused by a lack of water which resulted in irrigation problems, and the consequent loss of merchandise. To provide assistance to the nursery owners, the authorities plan to induce water rations upon residents in the area since if less water is used by the residents, more will be available to the nursery owners.

The objective of the authorities is to assist the nursery owners so that their profits/sales increase.

And it is expected that water ration ( imposed upon the residents ) will assist the nursery owners.

Which of the following points to the most serious logical flaw in the plan devised by the authorities?

A) Since the rationing of water by residents will result in lower payments for water by residents to the authorities, the plan will most likely be detrimental to the revenue earned by the local government for such services. - Out of Scope

B) By punishing the residents for financial difficulties experienced by agricultural business owners, the authorities risk harming the way they are perceived by the residential population, affecting future endeavours. - Out of Scope

C) It is not probable that 100% of the 25% decline in the profits earned by the nursery owners was a direct result of the irrigation problems and the damage caused to the merchandise by them - Out of Scope

D) Because most of the residents in the area are not homeowners, but instead rent their apartments, the water rations, creating the need to save water, will give rise to the infrequent cleaning of apartments and buildings, lowering the market value of the area's residential properties. - Out of Scope

E) The introduction of water rationing to the area will improve the status of the nurseries' goods at the expense of the revenues they earn since, due to the need for irrigation entailed in the care of such products, residents will cease to purchase garden plants.

Option E suggests -

1. Quality of nursery owners goods ( decorative garden trees and plants) improved - Due to more availablity of irrigation water
2. Residents will not be willing to purchase garden plants.

Thus we can say that though irrigation improves the nursery owners are unable to increase their profits/sales since , few buyer of their goods are availble.

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Re: In area that is both agricultural and residential in nature  [#permalink]

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24 Jan 2016, 05:12
The authority was trying to help the gardeners by rationing water to the inhabitants.
If this plan backfires on the gardeners then the irony of fate will cease their profit for good.
Thats what is explained in option E
hence the answer is E
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Re: In area that is both agricultural and residential in nature &nbs [#permalink] 24 Jan 2016, 05:12
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# In area that is both agricultural and residential in nature

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