Critical Reasoning

Now problems require new solutions. And new problems arise with new populations and new technologies. The solutions of these problems require new institutions as well as new political, economic, and social mechanisms. Yet institutions and political and economic arrangements grow slowly, new institutions should be given every chance of success.

The writer of the above makes which of the following assumptions:
(A) New institutions are needed because old institutions are inefficient.
(B) New institutions are created in order to solve existing problems
(C) As old institutions are phased out, new ones take their place.
(D) If there were no growth, old institutions would die more slowly.
(E) Socio-technological change requires new forms of institutional arrangement.


Im confused between B and C, pls explain

I go with B.

In my opinion this is not a good question. I cannot find the source, I searched but only found one instance of it and that is on GMAT Club. The source there was listed as GMAT TEST PREPARATION, I am not sure what that means. Is it a company?

I do not see where either B or C would be correct.

B is wrong because "existing problems" are not mentioned it says, "The solutions of these [NEW] problems require new institutions as well as new political, economic, and social mechanisms."

C is weird. Why is it required that old institutions fade out? Cannot the new institutions just be built in addition to the old? Can we not just have some institutions just disappear without new ones?

An assumption must be REQUIRED. These answers are not. It is a bad question, in my opinion.