Morganville's downtown

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Morganville's downtown

by logitech » Mon Feb 02, 2009 2:58 pm
Which of the following completes the argument below.

Twenty percent of the stores in Morganville's downtown shopping district will fail within give years because they will be competing directly with the Savemart discount department store newly openedd in East Morganville. The downtown shopping district jas lost business at this rate before and has always completey rebounded. Confidence that will rebound again from the losses it is now about to suffer is ill founded, however, because _____________________

a) the stores likely to be put out of business by direct competition from Savemart are the downton shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend

b) the bus line that has long connected the downtown area of Morganville with East Morganville has a tradition of carrying shoppers who reside in East Morganville into downtown Morganville to shop

c) when the downtown shopping district has rebounced before, the business premises of a failed business were typically taken over by a business of the same kind as had been there before

d) Savemart's business plan for teh East Morganville store is based on earning low profits, if any, during the first 5 years of store's existence

e) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether
LGTCH
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by Karen » Mon Feb 02, 2009 7:06 pm
I think it must be A, because that's the only one that has direct bearing on the problem. It suggests that in the earlier situations, the stores that went out of business weren't the "anchor" stores. B looks tempting, but since we don't know what percentage of shoppers come from East Morgantown to begin with, we don't know how big the problem is going to be. Maybe most of the damage to the shopping center is going to be a result of people from Central Morgantown going to the east for the first time.

This problem isn't as tightly constructed as one from the OG, though. It doesn't absolutely establish that the anchor stores weren't hit before, and an OG problem wouldn't leave loose ends like that. Where did it come from?
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by dnkcdnguy » Mon Feb 02, 2009 8:16 pm
What a great question and I was able to narrow it down to A and B. B was my first choice with A as a close second. However, after reading Karen's response I'm now thinking the answer may be A.

What source was this from? What is the OA?

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by logitech » Wed Feb 04, 2009 12:06 pm
This is an official problem from GMAT prep software and the OA is A
LGTCH
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by Brad.C » Fri May 13, 2016 2:16 pm
It seems to me that the right answer is A.