Question: A luxury apartment condo recently opened up along the Biltmore’s waterfront. Within the first two months, 80% of the standard units in the first ten of the condo’s twelve stories were sold. Nonetheless, only two of the eight penthouses, all of which are located in the top two stories of the building, have sold. In order to sell the remaining six penthouses, the corporation that owns the property, should drop the rate of the penthouses by 20%.
Which of the following, if true, would argue against the proposal above?
(A) Typically, the very first unit to sell in a luxury condo is a standard unit.
(B) Biltmore has recently suffered a recession and economists do not predict an imminent recovery.
(C) Four of the six penthouses yet to be sold face the north side of the city, away from the waterfront.
(D) There have been so many buyers ready to purchase the penthouses that apartment management has been carefully selecting those applicants with the best credit histories.
(E) After the proposed discount each penthouse will only be 15% more costly than a standard unit.
“A luxury apartment condo recently opened up along the”- is a critical thinking GMAT question. In order to respond to the question, a candidate may decide to present an illogical argument or look for evidence that would refute it. A candidate's capacity for logic and analysis is evaluated on the GMAT critical reasoning exam. Candidates must point out the argument's benefits and drawbacks as well as its logical errors with regard to this subject. Ten to thirteen questions on critical reasoning are included in the CR section of the 36 GMAT verbal questions.
Answer: D
Explanation:
Along the waterfront of the Biltmore, a luxurious apartment building recently opened. Eighty percent of the standard units in the first ten stories of the condo, which had twelve, were sold in the first two months. Only two of the eight penthouses, which are all situated on the top two stories of the building, have, however, been sold. The corporation that owns the property should reduce the rate of the penthouses by 20% in order to sell the remaining six units.
Let us analyze each option separately to find the correct answer that argues against the proposal given above.
Option A: Incorrect
This option, which claims that the first unit to trade in a luxury condo is typically a standard unit, has no bearing on the situation at hand. Additionally, it makes sense that the standard units would sell first since penthouse suites probably make up the majority of condos. When the first penthouse is sold, it is unknown to us. This option would be the best choice if it said that penthouses are typically the last units to sell in a luxury condo. Therefore this option is ruled out.
Option B: Incorrect
This option says that Biltmore has recently experienced a recession and that there is no immediate indication of a recovery. This suggests that the strategy would succeed. The question requests an answer that makes the proposal weak. Therefore this option is ruled out.
Option C: Incorrect
According to this option, four of the six penthouses that haven't been sold are situated on the city's north side, away from the waterfront. This is incorrect because we are oblivious to the distinction between waterfront and non-waterfront units. Perhaps the former are nicer and larger. Therefore this option is ruled out.
Option D: Correct
This option states that apartment management has been carefully choosing those applicants with the best credit histories. This is because there have been so many buyers eager to purchase the penthouses. This provides a compelling explanation for why the penthouses haven't sold yet. Since there is such a high demand for the penthouses, management is currently sorting through a large number of applications. Therefore, it would be a terrible idea to reduce the price by 20%. As a result, this option is the right answer.
Option E: Incorrect
According to this option, each penthouse will only cost 15% more than a standard unit after the suggested discount. This suggests that lowering the price by 20% might be similar to "selling the penthouses short." However, it does not make it abundantly clear why lowering the price by 20% would be a terrible idea. It is much preferable to offer a discount on the penthouses before finding buyers than to first have a large number of interested parties. Therefore this option is ruled out.
From the explanations given above, it is clear that the fourth option is the correct answer.
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