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.
What's the OA?
Residents of city Y have more purchasing power than resident
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Stockmoose16
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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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peter.p.81
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