Hi mate. You deserve a kudo. Very impressive question.Three important notes:(1)
The logic of the question, which I believe is more of LSAT than of GMAT, is:A ==> B
Not A ==> Not B .
This is WRONG
I love wearing suit in formal events. This does NOT mean I don’t love wearing suit in non-formal events.(2)
This is “except
” question. Be aware!(3)
In paradox questions, there is NO conclusion, just facts.ANALYZE THE STIMULUS: Fact:
With problems in the mortgage industry and a declining economy, overall housing sales are down by more than 40% percent. Fact:
Online real estate broker sites, however, have seen increased traffic and revenues are up by more than 10 percent in the slumping real estate market.Question:
Each of the following, if true, helps to explain the improved performance of online real estate brokers during the housing slump EXCEPT:ANALYZE EACH ANSWER:
A) During a slump in the housing market, buyers are more likely to shop online broker sites in search of the best possible price.Wrong.
A can explain the paradox. If buyers are more likely to shop online broker ==> Online real estate brokers’ revenue increase.
B) When the housing market is strong, both buyers and sellers rely on traditional real estate brokers in an order to buy or sell property more quickly.Correct.
That people prefer tradition brokers in strong market does NOT mean people prefer non-traditional brokers, says online brokers, in weak market. This is WRONG
logic and does not help to explain the paradox.
C) The cost of selling a property with an online broker is a fraction of the cost of using a traditional real estate broker.Wrong.
Clearly C explains why online brokers’ revenue increase.
D) Online brokers devote more advertising resources to attracting customers during a downturn in the real estate market than do traditional retailers.Wrong.
Clearly D explains why online brokers’ revenue increase.
E) Customers of online brokers, but not customers of traditional brokers, can control the cost of listing and selling their house by choosing from a number of available packages and options.Wrong.
Same as in A. If customers prefer online brokers for their conveniences, online brokers’ revenue will increase.
Hope it helps a bit.
Please +1 KUDO if my post helps. Thank you.
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