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02 Dec 2025, 11:22
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??Real estate broker: Some people in Country X have postponed home purchases because of this week's news stories claiming that real estate prices will probably fall soon. But to get a good deal on a new home, a better strategy is to buy precisely when the media is advising everyone to sell. Widespread pessimistic news stories encourage panics that put downward pressure on real estate prices.
The reasoning given for E requires us to make the connection that just cause the media is saying real estates prices will fall soon => they are advising people to sell their homes as well. But that need not be true. It could just be the case that the media is saying that real estate prices are going down. They need not comment on anything else. Maybe they ask homeowners to sell at a later time because of some other factors.
How can we make the connection that just cause the media is saying that prices are gonna fall means that they are also advising homeowners to sell? That's a bit of a hasty assumption in my opinion
The reasoning given for E requires us to make the connection that just cause the media is saying real estates prices will fall soon => they are advising people to sell their homes as well. But that need not be true. It could just be the case that the media is saying that real estate prices are going down. They need not comment on anything else. Maybe they ask homeowners to sell at a later time because of some other factors.
How can we make the connection that just cause the media is saying that prices are gonna fall means that they are also advising homeowners to sell? That's a bit of a hasty assumption in my opinion
miag
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Schools: Anderson '26 (A) Haas '26 (A) Kellogg '26 (A)
GMAT Focus 1: 675 Q87 V83 DI80
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04 Dec 2025, 03:42
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Hi,
"Widespread pessimistic news stories encourage panics that put downward pressure on real estate prices."
Panic here => people rushing to sell. The author has linked the 2 in the passage itself: pessimistic stories -> panic selling -> prices drop
Hope this helps!
"Widespread pessimistic news stories encourage panics that put downward pressure on real estate prices."
Panic here => people rushing to sell. The author has linked the 2 in the passage itself: pessimistic stories -> panic selling -> prices drop
Hope this helps!
Pranavsawant
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