Pre-thinking:Conclusion: To prevent a shortage of paper, the administration should pass regulations mandating that commercial departments of the city curtail their paper-based activities and undertake paper recycling measures.
Premises (Why?):i) Increasing economic activity in Tranceland has led to an increased demand for paper.
ii) This trend is expected to continue.
iii) Paper mills need to be located such that their water needs can be met.
iv) All such locations are already occupied --> No new mills can be set up.
Given the above, we can surmise that the only way that the increasing demand for paper can be met is:
i) If capacity of existing mills is increased.
ii) If increased demand from some areas is offset by decreased demand in other areas.
The conclusion states that the way out is to implement solution (ii) presented above. Therefore, it presumably rules out the possibility of (i). Now let us analyze the answer options:
(A)The existing paper mills are currently working at their peak capacity and cannot be pushed to produce more to meet all of the growing demand for paper
Consistent with our pre-thinking. Correct answer.(B)Tranceland’s water resources are limited and cannot satisfy all the industrial needs of the city.
Does not address the conclusion in any way. Irrelevant. Eliminate.(C)Tranceland’s commercial departments will not find it inconvenient to convert their paper transactions to online transactions.
This implies that implementing the suggested plan of action would not be possible, or at least not easy. This could potentially act as a weakener for the conclusion and hence cannot be an underlying assumption. Eliminate.(D)The costs undertaken by the commercial departments for their paper-based transactions are not significantly lower than those for recycling of paper.
Same as (C). Eliminate.(E)Recycling of paper by the commercial departments will significantly ease the pressure on the currently functioning paper mills.
The conclusion deals with merely preventing shortage of paper. This option assumes that currently the paper mills are functioning under pressure - something not borne out by the stimulus. Also, it is possible that the measure only marginally eases the pressure (if existent) and not significantly. All things considered, several question marks on this option and (A) is a much cleaner one. Eliminate.Hope this helps.