GMAT Test Prep: CR-25531072 GMAT Critical Reasoning

Keith: Compliance with new government regulations requiring the installation of smoke alarms and sprinkler systems in all theaters and arenas will cost the entertainment industry $25 billion annually. Consequently, jobs will be lost and profits diminished. Therefore, these regulations will harm the country’s economy.

Laura: The $25 billion spent by some businesses will be revenue for others. Jobs and profits will be gained as well as lost.

Laura responds to Keith by
Select one of the following answer choices