Verbal Reasoning Quiz
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An economist examined the effects of a new commuter rail line on small businesses near stations. Using tax records, she found that in the first year after the line opened, retail sales increased most in neighborhoods that also relaxed zoning rules for mixed-use development. In neighborhoods where zoning remained restrictive, sales increases were smaller and were concentrated in businesses that already had high foot traffic before the rail line. The economist also noted that commercial rents rose in all station areas, but the steepest rent increases occurred in the mixed-use neighborhoods. Interviews with business owners suggested that some long-standing low-margin shops closed after rents increased, while newly opened businesses tended to be higher-margin services. The economist cautioned that raw sales growth alone could obscure changes in the composition of businesses.
Which statement is most strongly supported by the information given?
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