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Rural households have more purchasing power than do urban or suburban

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Rural households have more purchasing power than do urban or suburban  [#permalink]

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New post 14 Jul 2015, 23:01
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92% (00:57) correct 8% (01:08) wrong based on 453 sessions

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Rural households have more purchasing power than do urban or suburban households at the same income level, since some of the income urban and suburban households use for food and shelter can be used by rural households for other needs.

Which of the following inferences is best supported by the statement made above?

(A) The average rural household includes more people than does the average urban or suburban household.

(B) Rural households have lower food and housing costs than do either urban or suburban households.

(C) Suburban households generally have more purchasing power than do either rural or urban households.

(D) The median income of urban and suburban households is generally higher than that of rural households.

(E) All three types of households spend more of their income on food and housing than on all other purchases combined.

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Re: Rural households have more purchasing power than do urban or suburban  [#permalink]

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New post 03 Jul 2016, 07:15
Why not E?

putting random values still proves this....
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Re: Rural households have more purchasing power than do urban or suburban  [#permalink]

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New post 03 Jul 2016, 10:20
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Priyank38939 wrote:
Rural households have more purchasing power than do urban or suburban households at the same income level, since some of the income urban and suburban households use for food and shelter can be used by rural households for other needs.

Which of the following inferences is best supported by the statement made above?


Quote:
PP : Rur > Urban
Why : Some Income of Semi/Urb ( spent on Food & Shltr ) = Rural folks spend on other needs


Prethink : Why doesn't Rural people doesn't bother about spending money on Food & Shltr : Might be it is cheap , They have abundance of food , Shelter is not a matter of concern for them , etc...

Lets analyze the options -


A The average rural household includes more people than does the average urban or suburban household.

No of people is not the issue - Out of scope...

B Rural households have lower food and housing costs than do either urban or suburban households.

Closely matches with one of our line of thinking... Abundance of food can be a cause for less price of food, hence correct

C Suburban households generally have more purchasing power than do either rural or urban households.

We are told at the very outset - " Rural households have more purchasing power than do urban or suburban households at the same income level "

So, this option is not correct...

D The median income of urban and suburban households is generally higher than that of rural households.

Same as option (D)

E All three types of households spend more of their income on food and housing than on all other purchases combined.

We do not have required data pertaining to the income and heads under which people in the three types of household spends their income, this is not correct....


Hence IMHO (B)

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Re: Rural households have more purchasing power than do urban or suburban  [#permalink]

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New post 16 Aug 2016, 06:28
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Frankly saying, I would categorize this question as Assumption question rather than Inference. Choice B gives a new information. There might be numerous reasons why rural people are left with more money over than that of urban and suburban people.
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Re: Rural households have more purchasing power than do urban or suburban  [#permalink]

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New post 23 Oct 2018, 10:25
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Rural households have more purchasing power than do urban or suburban &nbs [#permalink] 23 Oct 2018, 10:25
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