In the last year, real estate prices, such as those for

Quant in verbal is always interesting.

In the last year, real estate prices, such as those for houses and condominiums, have gone up an average of 7% in the city of Galway but only 2% in the town of Tuam. On the other hand, average rents for apartments have risen 8% in Tuam over the last year, but only 4% in Galway.

Which of the following is an inference that can be reasonably drawn from the prem- ises given above?

(A) In the last year, the ratio of average apartment rents to average real estate prices has increased in Tuam but fallen in Galway.
Correct.

Tuam:
Average rents: Ro --> 1.08*Ro
Real estates: Eo --> 1.02*Eo
Ratio of average rents/average real estates = R/E
\(\frac{Ro}{Eo} < \frac{1.08*Ro}{1.02*Eo}\)
--> Ratio has increased.

Galway:
Average rents: Ro --> 1.04*Ro
Real estates: Eo --> 1.07*Eo
Ratio of average rents/average real estates = R/E
\(\frac{Ro}{Eo} > \frac{1.04*Ro}{1.07*Eo}\)
--> Ratio has decreased.

A is correct.

(B) Tuam has experienced a greater shift in demand toward the rental market than Galway has.
Wrong. increased percentage does not mean increased demand.

(C) It has become easier for Galway real estate to be bought and sold, whereas it has become easier for Tuam real estate to be rented.
Wrong. Can't infer which city becomes easier for real estate to be bough and sold.

(D)The supply of rental apartment units has decreased more in Tuam than in Galway.
Wrong. Nothing about supply. Infer too far.

(E) The average amount spent on housing is higher in Galway than it is in Tuam.
Wrong. Nothing about average amount spent on housing. Infer too far.

NOTE: when you see Quant in question stem, try to link to answers that have Quant embedded.

Hope it helps.

Can anybody help me with this question please, thanks![/quote]