Developers interested in attracting new business to an area should invest initial capital in construction of buildings appropriate to each site. Although purchase prices will be slightly higher, the sites will be more attractive because potential buyers will not have to spend money out of pocket to build.

Which of the following, if true, would most undermine the soundness of the suggestion that developers construct new buildings before inviting potential buyers?

Answer Choices

Correct answer marked below

Construction costs in the area most attractive to new business are higher than in other parts of the city.

Developers are aware of the types of business wishing to move into the area and concentrate on designing appropriate buildings.

If developers do not sell every lot with a building on it, they will still be able to rent the space and regain some of their investment.

Zoning regulations in some areas require that specific building materials be used, which could result in unforeseen costs for developers.

Potential buyers will likely want to design their own buildings, making it unlikely that they will purchase a site on which there is an existing structure.

Correct

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Comments

ShivamJun 25

wait why is D wrong? unforeseen costs sound like they'd hurt the developers too

RimjhimJul 3

it only affects 'some areas' and it's about materials, not about whether buyers actually want a pre-built structure. E hits the core assumption.

AdrianJun 27

the phrase 'out of pocket' threw me a bit but the conclusion is really about buyers being attracted. E says they won't be. easy call.

What this question tests

What it tests

Whether you can identify the option that most undermines an argument's conclusion.

Common trap

Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.