venmic wrote:
The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s property tax is based—the assessed value of that real estate—has also declined. Moreover, the percentage of assessed value that was paid as property taxes to the city did not change during this period.
The information above most strongly supports which of the following?
(B) The percentage of Altonville’s overall revenue that was collected from property taxes did not change over the past four years.
Let me explain why option B is wrong.
Let's first talk about the following percentage:
P = The percentage of your income that came from freelancing.
How do you calculate the above percentage?
\(P = \frac{Your \ income \ that \ came \ from \ freelancing}{Your \ total \ income}\)
In other words, we can rewrite your total income as the sum of your income from freelancing and your income from other sources.
\(P = \frac{Your \ income \ that \ came \ from \ freelancing}{(Your \ income \ from \ freelancing \ + \ your \ income \ from \ other \ sources)}\)
To make a statement about P, you need to be aware of your income from other sources. Right?
That's the same case here.
Let's look at the percentage talked about in option B:
P' = The percentage of Altonville’s overall revenue that was collected from property taxes
\(P' = \frac{Altonville's \ revenue \ that \ was \ collected \ from \ property \ taxes}{Altonville's \ total \ revenue}\)
Or,
\(P' = \frac{Altonville's \ revenue \ that \ was \ collected \ from \ property \ taxes}{(Altonville's \ revenue \ that \ was \ collected \ from \ property \ taxes \ + \ Altonville's \ revenue \ that \ came \ from \ other \ avenues)}\)
We have info about Altonville's revenue that was collected from property taxes. However, we have no information about Altonville's revenue that came from other avenues. Thus, we cannot say how P' has changed over the years.
Does it make sense?