Q15 - Goodbody, Inc., is in the process

[dtangie23]

I narrowed this question down to choices (A) and (E).

Choice (A): the businesses impacted by the recession can take advantage of lower rents outside the financial center.

So, this makes sense. But, how are we to know that Goodbody will have those lower rents? What if other buildings have lower rents? That would not help Goodbody attract more tenants.


Choice (E): the recession won't have the most severe impact on service industries which require a lot of office space.

The businesses that require a lot of office space won't be totally destroyed by the recession. That doesn't mean they won't be impacted by the economy.

I guess (A) really counters the recession aspect of it best. My only hesitation is, again, that they don't specify Goodbody.

Any insight would be much appreciated.

[b91302310]

This is what I think.

The paradox lies in the last sentence : Surprisingly enough, the coming recession, though it will hurt most of the city's business, will help Goodbody to find tenants.

So, why does Goodbody still benefit from the recession which hurts most of the city's business? There must be some reason that we should find out in the answer choice. Thus, we may find the "new information" to explain what speciality that Goodbody possesses. I think (A) gives a good reason. It is because during the recession, businesses want to pay lower rent at the expense of good location. So, we know that Goodbody have the price advantage (lower rent) to make it possible to find tenants.

For (E), I think which industry is affected by the recession is irrelevant to resolve the paradox why the recession will otherwise help Goodbody to find tenants. Furthermore, if the recession has no effect on the service industries, they might not even consider renting office space offered by Goodbody since that office space is located outside the financial center.

Hope this helps.

[giladedelman]

Great explanation! You're right, dtangie23, that it's possible that Goodbody wouldn't have lower rent. But the fact that lower rents, which businesses affected by the recession want, are available where Goodbody is located would do by far the most to explain why Goodbody will actually benefit from the recession.

[nflamel69]

The way I look at it is that E has the word most severe effect. While it can not have the most severe effect, it still could have some negative effect on the industry, so this answer choice does nothing at best.