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15 May 2022, 22:13
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waytowharton
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
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
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.
08 Sep 2022, 09:12
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I completely understand the rationale for why B is correct, as it fills the gap between "beach front" properties and "urban waterfront" properties. That said, I thought this question is a strengthen question, and I can't help but feel that choice B structurally functions as an assumption necessary for the conclusion to be true, whereas D is structurally a strengthener, because, by receiving a tax break from the government, the developer would further increase / add to the profit by developing properties on the waterfront. Can someone please explain the structural discrepancy of choice B?
08 Sep 2022, 11:34
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KANIKABHATEJA
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?
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.
Quote:
whereas option d stregthens that if given tax incentives developers will be benefitted more
Choice D isn't relevant because the argument is about demand (from homebuyers) for homes, not about supply (from developers).
