Real Estate Agent: Next year, the occupancy rate for residential rental properties in Riverton will increase despite projections of decreasing population in the city. Generally, when a city's population decreases, so does the occupancy rate for residential rental properties. However, in the continuing climate of increasing interest rates on home mortgages, an unusually large number of Riverton residents who would typically buy homes will opt to rent instead.
The boldfaced statements in the argument above play which of the following roles?
In the first bold statement, the agent predicts, or concludes, that occupancy rates will increase despite decreasing population. The second bold statement describes the reasoning behind this prediction: if potential home-buyers are discouraged by high interest rates on mortgages, they will opt to rent instead. So, the first statement is a prediction, and the second statement supports this prediction.
(A) The second statement does not weigh against the conclusion, but rather supports it.
(B) The agent’s final prediction is made in the first bold statement, not the second bold statement.
(C) The first bold statement does not describe a pattern of cause and effect. In fact, it predicts the disjointed relationship between population and occupancy rates: as population decreases, occupancy rates will increase.
(D) CORRECT. This choice describes the correct relationship between the two statements: the first is the conclusion, and the second supports this conclusion.
(E) The first statement is not an undisputed fact, but rather a prediction.