In the 18th and 19th centuries, it was believed in many coastal Americ

Question

In the 18th and 19th centuries, it was believed in many coastal American cities that the waterfront was an undesirable location for residential buildings. As a result, much of the waterfront in these cities was never developed aesthetically and instead was left to industry and commerce. Today, however, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front. A developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them.

Which of the following, if true, most strongly supports the claim made about urban waterfront properties?

(A) People today have more money, relatively speaking, to spend on real estate than they did in previous centuries.

(B) Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.

(C) Many urban waterfront lots are available for purchase.

(D) Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives.

(E) Properties in interior residential districts in coastal American cities are significantly more expensive than those along the waterfront.

KarishmaB · Accepted Answer

Premises:

- Much of the waterfront was never developed aesthetically and instead was left to industry and commerce.
- Today, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front

Conclusion:
To make a large profit, buy urban waterfront lots and erect residential buildings on them.

Much of the waterfront was developed as industry/commerce area. Today, residential properties along the beach are seen as prestigious. We don't know how many such current residential properties there are and how far they are from industry/commerce area. They could be very few and away from industry, we don't know.

We are concluding that to make a large profit, buy "urban" waterfront lots and make residential buildings. The "urban" waterfront would be industry/commerce area. We don't know whether people would be willing to pay large sums for residential places in these districts. 
Hence (B) supports the claim made about urban waterfront properties.

D. Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives.
Developers would be getting tax incentives to rehabilitate waterfront areas. So their cost might be lower than the cost of setting up residential properties inland. But to make profits, they will still need people to buy these properties. If people don't buy, whatever the cost may be, they may not be able to even recover that.

(B) is certainly better than (D).

dinesh86 · Answer

In the 18th and 19th centuries, it was believed in many coastal American cities that the waterfront was an undesirable location for residential buildings. As a result, much of the waterfront in these cities was never developed aesthetically and instead was left to industry and commerce. Today, however, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front. A developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them.

Which of the following, if true, most strongly supports the claim made about urban waterfront properties?

Conc.: To make large profits, a developer should buy WF (earlier for industrial and commerce use) and erect RB on them.
 Few assumptions can be: 
1. If no such WFs are available for purchase or
2. WFs are available but no purchaser or
3. Purchaser/developer is available but no buyer of build residential properties or
4. Buyers are available but they are not willing to buy RB on earlier used-to-be-industrial/commercial places.

A] People today have more money, relatively speaking, to spend on real estate than they did in previous centuries - OFS 
 B] Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts - Correct. Buyers are available and they are willing to spend on erstwhile ind./comm. properties 
 C] Many urban waterfront lots are available for purchase - Go with one of assumptions but Option B is more strong as what if lots are available for purchase but no buyer is available ? Hence wrong.
D] Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives - Question talks about profits. What if developer erect property because of great tax-incentive but could not find any buyer for this property ? He will suffer losses.
E] Properties in interior residential districts in coastal American cities are significantly more expensive than those along the waterfront - OFS

Bunuel · Answer

OFFICIAL EXPLANATION

The conclusion is that a developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them. The basis for that claim is that people pay large sums for beach front homes. We are asked to strengthen this argument.

(A) This choice states that people have more buying power today than in previous centuries. This does not strengthen the claim that a developer will make money on urban waterfront properties.

(B) CORRECT . This choice states that homeowners will be willing to spend large sums of money on residential properties in traditionally industrial or commercial districts. Since we know from the argument that urban waterfronts have traditionally been industrial, this fact strengthens the claim that a developer can make a profit on urban waterfront properties.

(C) This choice states that many urban waterfront lots are available for purchase. This does not suggest, however, that a developer will be able to sell them after he or she builds on them.

(D) This choice states that many coastal cities are giving tax breaks to developers who rehabilitate the waterfront. But this does not suggest that anyone will buy the developed properties.

(E) This choice states that properties in the interior of cities are more expensive than those on the waterfront. Although waterfront properties are therefore cheaper to acquire, this does not necessarily mean that a developer can make a profit after buying such properties.

BillyZ · Answer

Correct Answers in Must Be True Questions Reviewed

Let us take a moment to review two types of answers that will always be correct in a Must Be True question.

1. Paraphrased Answers

Paraphrased Answers are answers that restate a portion of the stimulus in different terms. Because the language is not exactly the same as in the stimulus, Paraphrased Answers can be easy to miss.

Paraphrased Answers are designed to test your ability to discern the author’s exact meaning. Sometimes the answer can appear to be almost too obvious since it is drawn directly from the stimulus.

2. Answers that are the sum of two or more stimulus statements (Combination Answers)

Any answer choice that would result from combining two or more statements in the stimulus will be correct.

Should you encounter either of the above as answer choices in a Must Be True question, go ahead and select the answer with confidence.

BarneyStinson · Answer

In the 18th and 19th centuries, it was believed in many coastal American cities that the waterfront was an undesirable location for residential buildings. As a result, much of the waterfront in these cities was never developed aesthetically and instead was left to industry and commerce. Today, however, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front. A developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them.

Which of the following, if true, most strongly supports the claim made about urban waterfront properties?

1]People today have more money, relatively speaking, to spend on real estate than they did in previous centuries.  - more money, relatively speaking, not discussed in the stimulus.

2]Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.  - goes hand-in-hand with the statement - "waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front."

3]Many urban waterfront lots are available for purchase.  - we don't know about this, we only know that it is industrial and commercial space.

4]Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives.  - tax incentives are not discussed, careful not to assume.

5]Properties in interior residential districts in coastal American cities are significantly more expensive than those along the waterfront.  - weakens actually, if interior spaces are more expensive, real estate developers won't be looking at waterfront properties.

seekmba · Answer

my pick is (B)

In the 18th and 19th centuries, it was believed in many coastal American cities that the waterfront was an undesirable location for residential buildings. As a result, much of the waterfront in these cities was never developed aesthetically and instead was left to industry and commerce. Today, however, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front. A developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them.

Which of the following, if true, most strongly supports the claim made about urban waterfront properties?

a)People today have more money, relatively speaking, to spend on real estate than they did in previous centuries.
>>> This does not effect property developers profit

b)Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.
>>> Since homeowners are willing to spend large sums on residential properties in industrial district, it is likely that developers will make profits by making buildings on those properties because as per the premise waterfront properties were taken by industry and commerce

c)Many urban waterfront lots are available for purchase.
>>> This does not effect property developers profit

d)Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives.
>>> Tax incentives are no where mentioned in premise

e)Properties in interior residential districts in coastal American cities are significantly more expensive than those along the waterfront.
>>> out of scope

pqhai · Answer

KEY is: the waterfront in these cities was never developed aesthetically   and instead was left to industry and commerce   ==> New residential buildings should be built on the waterfront that used to be industry and commerce districts.

1]People today have more money, relatively speaking,  to spend on real estate  than they did in previous centuries.
 Wrong.  Out of scope.

2]Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.
  Correct.   A developer can make profit ONLY IF customers are willing to pay for properties used to be industrial or commercial districts. If Customers are not willing to pay, a developer's plan will fail.

3]Many urban waterfront lots are available for purchase.
 Wrong.    Shell game.   What if there are many available lots but nobody wants to buy?

4]Many coastal American cities are encouraging developers to rehabilitate the waterfront through  tax incentives .
 Wrong.  Out of scope.

5] Properties in interior residential districts  in coastal American cities are significantly more expensive than those along the waterfront.
 Wrong.  Out of scope

Hope it helps.

chetan2u · Answer

hi,
the para can be rephrased as-
earlier waterfront areas were not thought of as residential areas and thus only industrial and commercial ventures stareted here. However now things have changed and people are willing to pick up houses here. 
 conclusion  property dealers, wanting to make profits, should create houses and earn profit..
 Requirement  most strongly supports the claim ..

lets see the choices:-

A. People today have more money, relatively speaking, to spend on real estate than they did in previous centuries.
 this does not tell us "why in particular waterfront areas should be preferred

B. Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.
 the catch here is   traditionally industrial or commercial districts .. these is what waterfront areas fit into...CORRECT

C. Many urban waterfront lots are available for purchase.
 It doe snot talk of "PROFIT"

D. Many coastal American cities are encouraging developers to rehabilitate the waterfront through tax incentives.
  tax incentives alone cannot transform into large profits

E. Properties in interior residential districts in coastal American cities are significantly more expensive than those along the waterfront
 we are not comparing anything..

ans B

FieryLeo · Answer

chetan2u

I am torn between B & D. Isn't B just a restatement of the premise that we already have the buyer who are ready to pay larger sum. But D gives us the another component of the profit.

chetan2u · Answer

Hi diya,

The problem with D is that it talks of MANY and not ALL...
Also tax incentives may not result in huge profit being talked of.

sssanskaar · Answer

Option B is just a restatement of what it says in the argument - "as evidenced by the large sums paid for homes along the beach front. " how does a restatement help in strengthening? A strengthener/weakener will provide outside information to help/destroy the conclusion.

Also in option D, even the option says MANY and not ALL, MANY means majority and hence, this can be a valid strengthener.

Option D should have been correct.

1. We already know that people are paying large sums of money for the houses along beach front. 
2. Since a majority of cities are giving tax incentives (savings), it will be wise for the developers to do so.

waytowharton · Answer

Hey Experts,

KarishmaB

I am confused between B and D. I read your comment regarding why B is better than D i.e. If people don't buy, whatever the cost may be, they may not be able to even recover that. However, it is mentioned in the passage that, "large sums paid for homes along the beach front". How is Option B bringing any new information? Moreover,option B is not referring to coastal areas; it is only talking about industrial and commercial districts.

Basis these 2 arguments and reasoning that P= SP-CP when CP would be low P would increase, I selected option D. Please help me understand gap in my reasoning.

AjiteshArun 
 ExpertsGlobal5 
 GMATNinja

KarishmaB · Answer

Urban waterfront is normally the centre of trade & commerce. The claim says that builders should buy lots in these areas and develop residential properties on them to earn profits. The point is, will people want to live in areas that are trade centres even if they are waterfront properties?

The coast line could be very long. The urban part of it would be the developed part of the coastline (where trade & commerce is carried out). What we are given in the argument is that people pay a lot of money for residential houses on the coast. These will likely not be in the trade centre kind of places. Now will people be willing to pay for waterfront residential property in the urban areas along the coast too? Option (B) tells us that they will be. Then it becomes likely that buying a lot in urban waterfront areas and developing it will bring in money. 
Option (D) tells us that the builder will get tax rebate. But what if people will not be willing to pay money to buy residential property in urban waterfront areas? Then the plan will fail. So (D) doesn't help us as much as (B).

Additionally note that it is not an official question so don't spend too much time on it.

KANIKABHATEJA · Answer

argument says- however, waterfront properties are generally seen as prestigious, as evidenced by the large sums paid for homes along the beach front , doesnt this mean if people are paying large sums of money then they are already in=terested in buying property at waterfront?

RonTargetTestPrep · Answer

Definitely not. There could certainly be lots of other areas where housing is also expensive.

More generally,  "If X, then Y" and "If Y, then X" are two completely different statements . These can be any possible combination of truth values (true and true; true and false; false and true; or false and false).
Here,
X = buy on the waterfront
Y = spend a lot of money for your home

What's novel in choice B is the fact that the waterfront homes are going to be built on former industrial sites. Industrial sites are often rife with contamination, toxic residues, and so on from the industrial processes that were once carried out there, so it's not certain that people would be willing to pay $$$$ for homes on such a site. Choice B removes that uncertainty.

Choice D isn't relevant because the argument is about  demand  (from homebuyers) for homes, not about supply (from developers).

VerbalBot · Answer

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In the 18th and 19th centuries, it was believed in many coastal Americ

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