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A and B had a close fight yet, what helped me to eliminate B is , B straight forward mentioning that price was the only concern but how can we say that price was the only concern there may be some more concerns also, but we cant simply state anything without the evidence given in the paragraph , so to say that price was the ONLY concern is too specific and A seemed better option than this .

hope it helps;)
can give feedback , if i am thinking in wrong direction.
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I'd adjust this slightly, keeping in mind that it's not an inference question. We don't need the answer to be supported by the passage; we need it to be NECESSARY to the argument. B is wrong because cost doesn't NEED to be the only concern for it to have been ONE of the reasons for consumers' decisions. So B is too extreme/narrow to be necessary to the argument.

A, on the other hand, is necessary, because if it isn't true the whole argument fails. The author thinks that travelers chose the suburbs over downtown because they are trying to save money. That's just an opinion--it doesn't PROVE that the suburbs are cheaper. But if the suburbs aren't cheaper, then the author's conclusion makes no sense. For that reason, A is a necessary assumption.
Alok22
A and B had a close fight yet, what helped me to eliminate B is , B straight forward mentioning that price was the only concern but how can we say that price was the only concern there may be some more concerns also, but we cant simply state anything without the evidence given in the paragraph , so to say that price was the ONLY concern is too specific and A seemed better option than this .

hope it helps;)
can give feedback , if i am thinking in wrong direction.
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But the last line says there is a preference for the low budget hotel so the inference would be that the suburban are the cheaper ones. Won't the assumption be that apart from price there is no other reason for the shift because if that is not true - the statement may not hold true?
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Premises:
Downtown hotels have 3000 vacant rooms for the holiday season.
Suburban hotels are overbooked.

Conclusion: Vacationers are preferring the cheaper hotels.

Why vacationers are mainly responsible for these bookings is indicated by the use of the words "holiday season." It means that offices are likely closed so they aren't business travels.

Now the question is how do we know that suburban hotels are cheaper? That is an assumption and that is why the answer is (A).
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Right, but the last line is not a fact. It's a conclusion followed by a supporting intermediate conclusion. So basically the structure is this:

Premises: Downtown hotels have vacancies and suburban ones are overbooked.
Intermediate Conclusion: People must prefer low-budget hotels.
Conclusion: The slowdown must have affected people's budgets.

As to your proposed conclusion, it surely is AN assumption, but we don't want to think in terms of THE assumption. Most arguments have more than one. In fact, in many cases we can come up with as many as we like. After all, an assumption is ANYTHING without which the argument would fail. For instance, the answer here could be something extremely specific, such as "Customers aren't avoiding the downtown hotels due to sewage leaks in the downtown area."
Dream009
But the last line says there is a preference for the low budget hotel so the inference would be that the suburban are the cheaper ones. Won't the assumption be that apart from price there is no other reason for the shift because if that is not true - the statement may not hold true?

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GMATNinja can you please explain why B is wrong? @bunnel?
Skyline393
There are around 3,000 hotel rooms in the downtown area that are still not booked for this winter holiday season. Most suburban hotels, however, are overbooked. The economic slowdown surely has affected vacation budgets of travelers as seen by their preference of low-budget hotels.

Which of the following is an assumption on which the argument above depends?

A. Most of the overbooked suburban hotels cost lower than the downtown hotels
B. Price is the only concern for choosing a suburban hotel over a downtown hotel
C. The suburban hotels are comparable to downtown hotels in every aspect other than price
D. Downtown hotels are preferred by business travelers who do bookings close to their travel
E. Most hotel customers are vacationers

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Keep in mind that we are looking for a necessary assumption. For that reason, we have to be wary of extremes. If we negate the right answer, it should ruin the argument. But if we negate B, it just says that price is not the only concern if those who choose suburban hotels. That doesn't stop it from being a concern, or even the primary concern. In any case, all the author is concluding is that the slowdown has caused people to reduce their vacation budgets. That relies on an assumption that price is guiding people's decision to stay in suburban hotels, but it doesn't rely on their being no other concerns. The author isn't even assuming that price is the primary concern, just that it is having a noticeable effect.
sakshijjw
GMATNinja can you please explain why B is wrong? @bunnel?

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🧩 The Argument
Premises:
  1. 3,000 downtown hotel rooms are still unbooked.
  2. Most suburban hotels are overbooked.
  3. There is an economic slowdown.
Conclusion:
Quote:
Travelers’ vacation budgets have been affected, as seen by their preference for low-budget hotels (i.e., suburban ones).
[hr]
🧠 What the argument assumes
The conclusion links travelers’ preference for suburban hotels to price (budget).
So the assumption must connect:
Quote:
“Suburban hotels” ⇢ “lower-priced than downtown hotels.”
Without that, the argument collapses.
If suburban hotels weren’t cheaper, the overbooking couldn’t be explained by budget concerns.
[hr]
✅ Option A: “Most of the overbooked suburban hotels cost lower than the downtown hotels”
That’s exactly the missing link.
It ties the evidence (overbooking in suburbs) to the conclusion (people choosing low-budget hotels due to reduced budgets).
Hence, A is necessary for the argument to make sense.
[hr]
❌ Option E: “Most hotel customers are vacationers”
You’re right — the stimulus mentions “vacation budgets,” which makes this tempting.
But notice:
  • The author is already talking specifically about vacation budgets of travelers, i.e., focusing only on those who are vacationing.
  • Even if some downtown bookings are by business travelers, that doesn’t affect the conclusion about vacationers’ behavior — which is the focus of the argument.
The argument doesn’t need most hotel customers to be vacationers; it only needs the vacationers’ choices to reflect the economic slowdown.
Even if only 30% of hotel customers are vacationers, the conclusion (“vacation budgets affected”) could still hold.
So E strengthens the argument somewhat but is not required — the argument can stand even if it’s false.

kausikS
Why not E? The question clearly states vacation budgets right?
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Can you correct the options
A Most of the overbooked suburban hotels cost lower than. The downtown hotels.
B. Price is the only concern for choosing a suburban hotel over a downtown hotel
C. The suburban. Hotels are comparable to downtown hotels in. every aspect other than price
D. Downtown hotels are preferred by business travelers who do bookings close to their travel
E. Most hotel customers are vacationers

A and B are near competitors
However the last line states
The economic slowdown surely has affected vacation budgets of travelers as seen by their preference of low-budget hotels.
Thus basic assumption is suburban hotels cost less.
A truly says so

Answer: A
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