Official Explanation
Outlining the logic of the mayor’s argument, we can say that she is stating that there is not enough information to evaluate the risks of this proposal to local businesses. The activist counters that she has previously taken actions that have harmed these businesses’ profits, so her reasoning is false. Note that the major discord between these arguments is that the mayor claims there is not enough information, while the activist claims that the mayor doesn’t mind harming local businesses’ profits.
The mayor could refute the activist’s argument by explaining that, in previous cases, she knew the advantages and disadvantages of the measures taken before implementing them, while she does not in this case. Essentially, this is what answer choice (E) states.
Answer choice (A) does not take into consideration the terms of the activist’s argument: the activist is not arguing about any particular brand of soda, but about different kinds of laws that the mayor has implemented. It also does not engage with the mayor’s claim of insufficient information.
The mayor cannot claim (B) yet, as she has already stated that there is not enough information to evaluate the possible costs and benefits of this scenario. This is thus not a valid flaw in the activist’s argument. The same is true for (C), which makes assumptions about the scenario that have not been presented by the mayor in this passage--this answer choice is out of the scope of the mayor’s argument.
While (D) may seem tempting, problems of timing come into play: the mayor is claiming that the town should wait and evaluate the issue when there is more evidence before implementing it, not that the town should implement the tax and THEN evaluate it. Therefore, (D) does not provide adequate grounds for criticizing the activist’s argument.
Answer = (E)