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TOPIC: ARGUMENT22 - The following appeared in a memo from the president of a company that builds and sells new homes in Steel City.
"Over the past five years, the population of Steel City has increased by more than 20 percent, and family incomes in Steel City have risen much faster than the national average. Nationwide, sales of houses priced above $150,000 have increased more than have sales of lower-priced houses. Such data indicate that we should make changes in our business to increase company profits. First, we should build fewer low-priced houses than we did last year and focus instead on building houses designed to sell at above $150,000. Second, we should hire additional workers so that we can build a larger total number of houses than we did last year."
WORDS: 494 TIME: 00:30:00 DATE: 2007-8-6 14:57:43
The arguer's assertion that they should build more houses of higher prices to earn more profit achieves little as it bases on the unsupportive evidence and irrational analysis as followings.
The most unwarranted evidence supported the arguer's assumption that the family incomes in the Steel City can cover the expense of the house above $150,000, is the family incomes in the Steel City have risen much faster than the national average. However this is not necessarily true. Suppose if the income of the local residents are much lower than the national average level, no matter how fast it rises it may still have a large distance from the national average level. Thus, we can not be assured that the local residents can afford the high priced houses.
Secondly, the arguer unfairly assumes the 20 percent population increase in Steel City will result in great demand of the houses in Steel City. First, the increased population will not likely to settle in Steel City any more as their parents did. The younger generation might like to go outside in pursuit of the success of their career in the big cities such as New York. Second, due to the limitation of the economy, the parents might still choose to stay with their children together. Thus, without considering these possible explanations, the arguer can not conclude that the houses will be in great demand.
Furthermore, the arguer asserts that to increase company profits is to build more houses of higher prices on the basis of the prices increasing space in a nationwide sales survey. However, the arguer fails to consider that though it is much easier for the high priced houses to increase in price, it is also easier for the high priced houses to be empty. If the houses are built without any purchases of the local people, how can this be profitable? And also, the cost of the high price houses must be higher too, as the arguer mention they need to hired additional workers to build more houses of high priced above $150,000. Without balancing the cost and revenue, the arguer can not reach any conclusion like building high priced housed will be profitable.
Additionally, the arguer fails to convince us they have the ability to build houses of high prices. As we know the houses of high prices demand higher standards both in design and implement, their company has been building the low prices houses these years, therefore, we have to doubt if this is feasible for them to build high standards houses only with hiring more workers.
To sum up, the arguer's suggestion is not feasible at all. To bolster his assessment, he should further his study on the market demand of the high priced houses and the affordability of the local people. Only when he substantiates that the high priced houses will be popular and they have the ability to build that houses, can we be assured with his suggestion. |
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