Harunia Province has a relatively dry climate and is attract

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Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces.
B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.
C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors.
D. The companies believe that the population is not likely to continue to grow.
E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available.

B

Source: Official Guide 2020
Source: — Critical Reasoning |

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edited

by deloitte247 » Wed May 01, 2019 9:34 am

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OPTION A:- INCORRECT
This reason given in this argument is is inadequate to connect with the argument. Planning large water transportation and irrigation that require the approval of neighbouring provinces doesn't have any logical relationship with why the water supply companies are asking the authorities to regulate the residential water use.

OPTION B:- CORRECT
If true that the company believes that putting the regulation of water in place will allow better planning and future profitability which the argument is also trying to insinuate, then this option gives a logical explanation to why the water companies are asking to regulate residential water.

OPTION C:- INCORRECT
Even if Harunian government serve as the board of directors to the water companies, it doesn't explain why these water companies want to regulate the water supply.

OPTION D:- INCORRECT
Well, the argument claims that due to the relatively dry climate, there is a fast growing population with high demand of water, so, this option undermines the argument and cannot give a logical reason to the decision of the water companies if it is believed that the population is not likely to grow.

OPTION E:- INCORRECT
If this happens, and it increases the amount of water available, then there will be no need to regulate the residential water use.