Jordan: If a business invests the money necessary to implement ecologically sound practices, its market share will decrease.
Jordan
If invest in environmentally sound, market share decreases. If not invest in environmentally sound, pollutes environment and wastes resources.
Terry
If consumers demand environmentally sound, no particular business gets especially hurt.
Evaluate
I would imagine a lot of us don't even fully follow the conversation on first read, because Terry's response involves a lot of outside knowledge / common sense.
Jordan is presumably worried that if a company invests in greener practices, they will add to their costs in a way that their less-green or already-green competitors won't.
Because Company X is spending more on environmental upgrades to their business (and their competitors aren't), X will need to raise prices to cover this rise in costs, and thus customers will start buying X's products less and the competitors' products instead, resulting in X's market share shrinking.
Meanwhile, Terry is responding that if consumers collectively stopped buying products that aren't environmentally friendly, they would switch all businesses to invest in environmental upgrades, so all the companies would have an increase in costs / prices, and thus no company would suddenly stick out in the marketplace as more expensive than the others (thus getting especially hurt).
LSAC is really asking us to fill in a lot of blanks there, and the worst part is it doesn't even make a big difference to getting the right answer.
Goal
What is the logical relationship between these two people's statements?
Jordan
If we do X, bad thing happens. If we don't do X, different bad thing happens.
Terry
If we do Y, then doing X won't lead to first bad thing.
X = investing in environmental upgrades Y = consumers demanding environmentally friendly products