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Summer: We should expect the current amount of compensation

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hapless12
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Summer: We should expect the current amount of compensation [#permalink] New post  Updated on: 28 May 2017, 06:47
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Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

Show Spoiler
In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?
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Originally posted by hapless12 on 21 Apr 2014, 01:01.
Last edited by broall on 28 May 2017, 06:47, edited 2 times in total.
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adymehta29
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  21 Apr 2014, 07:39
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hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

whether the definition of ‘traditional’ has changed in the current housing market.

whether the current real estate market has recovered from the recent crash.

whether it is a good idea to raise the traditional 4% commission.

whether a real estate agent is inherently motivated to complete a sale.

what level of commission is appropriate under current economic conditions.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?


I think it should be E
Here is how i got it (it may be wrong )

A.whether the definition of ‘traditional’ has changed in the current housing market. out of context as they are not arguing after the definition

B.whether the current real estate market has recovered from the recent crash. Autumn just mentioned that the 4% commission was before the market crashed , they clearly are not talking about the recovery of the market


C.whether it is a good idea to raise the traditional 4% commission. read carefully,summer never said anything about INCREASING the rate to 4%


D.whether a real estate agent is inherently motivated to complete a sale. if you see carefully autumn do not emphasis more on the motivating 4% commission, rather she is trying to explain summer why it is not advisable to pay 4% commission , so i think D will be eliminated

E.what level of commission is appropriate under current economic conditions. correct, as summer suggests paying the agents 4% commission ,while autumn suggests why it would not be ideal paying such high commission, keeping market condition in mind

it is my 1st time,so if the explanation is not proper, please excuse me
if it helped please press kudos :)
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apjoshua92
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  25 Jul 2015, 04:20
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The answer to this question is E. I have a request- Please do not write the answer just below the question... It fails the whole purpose :oops:
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  05 Aug 2017, 23:13
hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

Show Spoiler
In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?


Big big trap in C .Summer is not asking about a raise above 4%
E is the ans
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  24 May 2018, 20:35
Hi abhimahna, GMATNinja
I got a doubt. Can you please help me out.
If you remove C because Summer is not talking about rise.
Where in the statement, Summer talks about current Economic conditions ??

Thank you.
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sony1000
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  26 May 2018, 04:47
Hi nightmare, I believe current econocmis conditios refers to Autum’s comment on “That traditional 4% commission was established before the crash of the housing market”
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  26 May 2018, 05:18
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Nightmare007 wrote:
Hi abhimahna, GMATNinja
I got a doubt. Can you please help me out.
If you remove C because Summer is not talking about rise.
Where in the statement, Summer talks about current Economic conditions ??

Thank you.


Hey Nightmare007 ,

Let me explain you the argument in simpler terms. :)

Summer said Commission should be 4% because some studies show that below it won't work.

Autumn said your point is valid about traditional 4% but recently some crashes happened, hence you should not expect commission to be 4%.

This implies they are disagreeing about expectations that should be there at the current time. Summer is expecting 4% while Autumn is expecting less than 4%. And the reason for the disagreement by Autumn is the current economic conditions. Hence, it is okay to say that they disagree about the level of commission under current economic conditions. Summer didn't consider those conditions while Autumn did.

Hence, E is the right answer.

Does that make sense?
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  31 May 2018, 04:43
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hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

Show Spoiler
In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?


VERITAS PREP OFFICIAL SOLUTION:



Solution: E

In any Method of Reasoning question asking what two parties agree or disagree on, try to find one issue that both parties explicitly address – in most cases, the four bad answers will contain issues addresses by one or neither of the two parties. In this case, (E) is the best choice because both women discuss whether the 4% commission is still appropriate, with Summer saying yes and Autumn saying no.
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Re: Summer: We should expect the current amount of compensation [#permalink] New post  11 Mar 2023, 05:45
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