Practice Quiz

LSAT

Category - Logical Reasoning

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New Homes Inc. just completed construction of a new, 150-unit apartment building located in a suburb of a major city. Just after construction, one of the city’s main employers went bankrupt, damaging the entire city’s economy and putting many residents out of work. Despite this, all 150 units have now been rented and New Homes is making a profit on the building.

Which of the following, if true, would resolve this apparent paradox?
  1. The building is located in a convenient location, near a shopping mall, movie theater, and park.
  2. The building’s suburb is an area with a low cost of living, and during the recession many residents sought to move into such areas.
  3. Both before and during the recession, the housing supply in the area stayed consistent.
  4. Public transportation links the new building with that of the now bankrupt business.
  5. New Homes furnished the units with very desirable features, such as heated floors and walk-in closets.
Explanation
Answer: B - If the suburb where the building is located has a low cost of living, that fact would help resolve the paradox of the original passage, where the apartment building is economically successful despite the city’s economic troubles. If the building is making a profit, it must be because the building has different circumstances than the rest of the city. The building being in an area with a low cost of living explains its appeal during tough economic times.
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