Hi capnx,
Choice C is wrong because the scope of the argument is confined only to those businesses that cater to retirees. (The second sentence of the passage ends with "these businesses." These are the businesses (promise, no pun!) referred to in the first sentence.)
So, if there are more businesses that cater to the tourist, the author can happily answer "ahh but I wasn't arguing about those businesses."
Choice D is the correct answer. This is a classic numbers/percent flaw. The denominator here is: "of the people who moved from one state to another when they retired." Three percent fewer of them are going to Florida. The author thinks this means a fewer number of these people are moving to Florida.
Choice D tells us otherwise: The denominator has grown. So, yes, a smaller percent are going to Florida but because there are now (over the last ten years) way more retirees switching states, more retiriees could actually be moving to Florida.
Let me know if you want to see the numbers.
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