After reading the answer key and this post I still have questions
The prompt says:
much of the waterfront in these cities was never developed aesthetically and instead was left to industry and commerce.
So some (much) of the waterfront was left to industry and commerce
The conclusion is:
A developer who wishes to make a large profit would be wise to buy urban waterfront lots and erect residential buildings on them.
The first question is:
1. were does "urban" come from? What's the difference between "urban" waterfront and the waterfronts referred to previously in the passage?
The correct answer says:
B. Homeowners will be willing to spend large sums on residential properties in traditionally industrial or commercial districts.
And the explanation says:
(B) CORRECT. This choice states that homeowners will be willing to spend large sums of money on residential properties in traditionally industrial or commercial districts. Since we know from the argument that urban waterfronts have traditionally been industrial, this fact strengthens the claim that a developer can make a profit on urban waterfront properties.
What?
Answer B never mentions waterfront properties or the like. It only mentions "residential properties in traditionally industrial or commercial districts".
Are ALL "residential properties in traditionally industrial or commercial districts" waterfront properties? No. Some "residential properties..." are not waterfront properties.
Answer B does not make a distinction between waterfront and non-waterfront "residential properties....". Perhaps, "Homeowners will be willing to spend large sums on residential properties" only if these are non-waterfront properties. Then the argument would be weakened.
Stated otherwise, the question tells us that "much of the waterfront in these cities [...] was left to industry and commerce" but nobody ever told us that industry and commerce took care only of waterfront properties and nothing else (and not, for example, properties in the city center).
Answer B uses "industrial and commercial districts" as a synonym for "waterfront properties taken care by industry and commerce", and I have a problem with that!
My second question is:
2. What is wrong with my reasoning?
For me Answer B was simply a focus shift (thus a wrong answer)