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hazelnut
The consequences of the import tariff have been felt in not only the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by seemingly unrelated industries, such as the insurance market.

Correct idiom is: not only X but also Y

A. been felt in not only the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by
"in not only" and "but also by" is not parallel

B. been felt not only in the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by
"not only in" and "but also by" is parallel. However, "and even by" is not parallel to the list.

C. not only been felt in the factories and shipping yards, but also by local grocery stores, restaurants, and schools, and even
"not only been" and "but also by" are not parrallel

D. not only been felt in the factories and shipping yards, but also by local grocery stores, restaurants, and schools, and even by
Same as C

E. been felt not only in the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even
Correct. "not only in" and "but also by" are parallel. "and even" makes the list completed

Don't know why Veritas Prep marks this question 750-800 difficulty level.
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Answer choices A, C and D can clearly be eliminated. From choices B and E, E maintains parallelism.
So E.

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please explain why b is incorrect
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The consequences of the import tariff have been felt in not only the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by seemingly unrelated industries, such as the insurance market.

A. been felt in not only the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by
B. been felt not only in the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even by
C. not only been felt in the factories and shipping yards, but also by local grocery stores, restaurants, and schools, and even
D. not only been felt in the factories and shipping yards, but also by local grocery stores, restaurants, and schools, and even by
E. been felt not only in the factories and shipping yards, but also by local grocery stores, restaurants, schools, and even

The correct construction should be : consequences have been felt not only in A, but also by B
A = the factories and shipping yards
B = local grocery stores, restaurants, schools, and unrelated industries
The underlined parts are the two lists that are feeling the consequences so felt is common to both.
We get this construction in B and E but B has an additional ‘by’ which leads to the unrelated industries to fall out of list B due to parallelism error.
Hence E.

Hope it helps :)
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