Official explanation from the book:
This stimulus begins with some factual information about Carterville and finishes with a rather unexpected conclusion from the city officials. First, we are told that the number of new business moving to Carterville and requiring office space is expected to increase by nearly 30% over the next five years. Then we are told that in response to this influx of business, Carterville plans to expand its notoriously crowded financial district by only an additional four percent. While this does not seem as though it would be nearly enough expansion to accommodate the large number of new business that will be arriving in Carterville, city officials are confident that this increase will be sufficient to prevent the current space availability issues from getting worse. The apparent problem here comes from the discrepancy in the numbers: a 30% increase in businesses requiring new office space, and only a 4% expansion of an already overcrowded area. Of course, as we will see in the correct answer, the assumption most people make is that the new businesses will be located in the financial district itself. If instead they are planning to build elsewhere, then it seems likely that the city officials are correct and the 4% financial district expansion could prove to be sufficient.
Answer choice (A): It is irrelevant to the argument where the new office space will come from; we need an answer choice that shows that somehow the businesses planning to move to Carterville will not put a further strain on the space limitations in the financial district.
Answer choice (B): Even if the new construction is closely regulated and meets city building ordinances, this answer does not provide any reason why the new construction presumably needed to accommodate the new businesses will not make the current space availability problems worse.
Answer choice (C): This answer choice likely weakens the city officials’ argument, since the longer the new construction takes, the more likely it will be that the current space availability worsen.
Answer choice (D): This is the correct answer. If the majority of new businesses coming to Carterville do not plan to build or be headquartered in the financial district, but instead will be located where construction space is plentiful, then there is no reason to think they will put a further strain on the financial district’s limited space. This answer choice strongly supports the city officials’ belief that the influx of new business can be managed by only a four percent expansion of the financial district.
Answer choice (E): While this answer certainly explains why/how Carterville will benefit from the new businesses, it does not address the new businesses’ construction needs and therefore has no effect on the argument in the stimulus.