Critical Reasoning: Inference Questions

The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

Incorrect.

This conclusion goes too far beyond the premises given to us. The word most means more than half whereas the argument does not include even one example of such a loss.

Incorrect.

This conclusion goes too far beyond the premises given to us. Premise C tells us that the process is complicated but that is true whether the buyer or the agent handles it.

Incorrect.

This conclusion contradicts Premise A. The fee paid to the estate agent is not the only additional expense.

Incorrect.

This conclusion makes a prediction which cannot be based on the premises given to us. It is also undermined by Premise C which presents a disadvantage to the method.

Impressive!

Because Premise B tells us that the purchasing groups pay less on their homes, we can infer that if they sold them for the same price, the profit earned would be greater than that of those who used an agent.