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Residents of city Y have more purchasing power than resident

Expert replies

by Stockmoose16 » Fri Aug 08, 2008 1:01 pm
This is a very tough question. I think the answer is D. C sounds right, but you can't infer that the reason they have more purchasing power is BECAUSE of lower taxes, etc. There are many reasons they could have more purchasing power.

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airan wrote:Residents of city Y have more purchasing power than residents of cities X and Z. At the same income levels, residents of city Y spend less for food and housing and can therefore purchase more products.

Which of the following inferences is best supported by the statements made above ?

A. Residents of City Y have the ability to purchase food and pay for the housing considerably less than the residents of City X and Z because food and housing cost less.

B. Residents of City Y do not need to buy as much food and rent/build as big of houses as residents of cities X and Z.

C. City Y has lower sales taxes and cheaper land to build property on, compared to the cities X and Z.
D. Residents of city Y do purchase more products than residents of cities X and Z.
E. Residents of city U pay more for the other expenses compared to residents of X and Z.

A -> We are nowhere told of the ABILITY to purchase food n pay for housing of the residents of City y

B -> Seems the right answer to me

c-> Well this might be the correct answer too. but not sure

D-> we do not know if they DO purchase. We only know that their Purchasing power is higher than the other 2 cities.

E -> If it is 'U' then this choice is is clearly out. If it is a typo and if it was supposed to be 'Y' then the reasoning is same as D


Please drop in the OA.
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by peter.p.81 » Wed May 11, 2016 1:43 am
I would go for A as well. It seems the best and safest among the rest.
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