Critical Reasoning

Over the last five years, demand for hotel rooms in Cenopolis has increased significantly, as has the average price Cenopolis hotels charge for rooms. These trends are projected to continue for the next several years. In response to this economic forecast, Centennial Commerical, a real state developer, is considering a plan to convert several unoccupied office buildings it owns in Cenopolis inot hotels in order to maximize it's revenue from these properties.


Which of the following would it be most useful for Cenennial Commerical to know in evaluating the plan it is considering ?

Whether the population of Cenopolis is expected to grow in the next several years.
Whether demand for office space in Cenopolis is projected to increase in the near future.
Whether the increased demand for hotel rooms, if met, is likely to lead to an increase in the demand for other travel-related services.
Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings
Whether, on average, hotels that have been created by converting office buildings have fewer guest rooms than do hotels that were built as hotels.

can you please tell me what answer choice you will choose and why?

I would choose B.
Reason : We want to maximize the revenue. So, in near future, if the demand for office space grows more than that for the hotel rooms, he can maximize his revenue by keeping it as office space.

anshumishra wrote:I would choose B.
Reason : We want to maximize the revenue. So, in near future, if the demand for office space grows more than that for the hotel rooms, he can maximize his revenue by keeping it as office space.

agree.... the key word here is MAXIMIZE!!!!

B wins in absense of other better option.

The question maker has written a subsititute for this

Whether demand for hotel rooms in Cenopolis is projected to increase in the near future.
(if we prephase,we think of this)

in a very clear way as

Whether demand for office space in Cenopolis is projected to increase in the near future.