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?

Question

Quizplus · Accepted Answer

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.