Complaints that milk bottlers take enormous markups on the : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 19 Jan 2017, 19:04

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Complaints that milk bottlers take enormous markups on the

Author Message
TAGS:

### Hide Tags

VP
Joined: 29 Dec 2005
Posts: 1348
Followers: 10

Kudos [?]: 60 [0], given: 0

Complaints that milk bottlers take enormous markups on the [#permalink]

### Show Tags

02 Apr 2006, 11:48
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

Complaints that milk bottlers take enormous markups on the bottled milk sold to consumers are most likely to arise when least warranted by the actual spread between the price that bottlers pay for raw milk and the price at which they sell bottled milk. The complaints occur when the bottled-milk price rises, yet these price increases most often merely reflect the rising price of the raw milk that bottlers buy from dairy farmers. When the raw-milk price is rising, the bottlersâ€™ markups are actually smallest proportionate to the retail price. When the raw-milk price is falling, however, the markups are greatest.

If all of the statements above are true, which one of the following must also be true on the basis of them?

(A) Consumers pay more for bottled milk when raw-milk prices are falling than when these prices are rising.
(B) Increases in dairy farmersâ€™ cost of producing milk are generally not passed on to consumers.
(C) Milk bottlers take substantially greater markups on bottled milk when its price is low for an extended period than when it is high for an extended period.
(D) Milk bottlers generally do not respond to a decrease in raw-milk prices by straightaway proportionately lowering the price of the bottled milk they sell.
(E) Consumers tend to complain more about the price they pay for bottled milk when dairy farmers are earning their smallest profits.
If you have any questions
New!
Director
Joined: 05 Feb 2006
Posts: 898
Followers: 3

Kudos [?]: 107 [0], given: 0

### Show Tags

02 Apr 2006, 12:09
Now this one is tougth

I choose D
Director
Joined: 24 Oct 2005
Posts: 659
Location: London
Followers: 1

Kudos [?]: 15 [0], given: 0

### Show Tags

03 Apr 2006, 02:22
(A) Consumers pay more for bottled milk when raw-milk prices are falling than when these prices are rising. - Consumers pay pretty much same both times.
(B) Increases in dairy farmersâ€™ cost of producing milk are generally not passed on to consumers. - Bit of an extreme statement. Can go beyong scope of this passage.
(C) Milk bottlers take substantially greater markups on bottled milk when its price is low for an extended period than when it is high for an extended period. - Passage does not talk about extended periods.
(D) Milk bottlers generally do not respond to a decrease in raw-milk prices by straightaway proportionately lowering the price of the bottled milk they sell. _ think is better of the lot .
(E) Consumers tend to complain more about the price they pay for bottled milk when dairy farmers are earning their smallest profits.- Nobody is complaining in this passage.

Ans = D
Director
Joined: 13 Nov 2003
Posts: 790
Location: BULGARIA
Followers: 1

Kudos [?]: 47 [0], given: 0

### Show Tags

03 Apr 2006, 04:25
Hmm....think it should be A
VP
Joined: 21 Mar 2006
Posts: 1134
Location: Bangalore
Followers: 3

Kudos [?]: 40 [0], given: 0

### Show Tags

03 Apr 2006, 05:03
D it is.

(A) Consumers pay more for bottled milk when raw-milk prices are falling than when these prices are rising.

This states that the bottlers are making maximum profits when the raw-milk prices are down. But it does not say anything about the price the consumer pays.
Senior Manager
Joined: 08 Sep 2004
Posts: 258
Location: New York City, USA
Followers: 1

Kudos [?]: 17 [0], given: 0

### Show Tags

03 Apr 2006, 08:02
IMO D.
Senior Manager
Joined: 22 Nov 2005
Posts: 476
Followers: 2

Kudos [?]: 20 [0], given: 0

### Show Tags

03 Apr 2006, 10:29
Professor wrote:
Complaints that milk bottlers take enormous markups on the bottled milk sold to consumers are most likely to arise when least warranted by the actual spread between the price that bottlers pay for raw milk and the price at which they sell bottled milk. The complaints occur when the bottled-milk price rises, yet these price increases most often merely reflect the rising price of the raw milk that bottlers buy from dairy farmers. When the raw-milk price is rising, the bottlersâ€™ markups are actually smallest proportionate to the retail price. When the raw-milk price is falling, however, the markups are greatest.

If all of the statements above are true, which one of the following must also be true on the basis of them?

(A) Consumers pay more for bottled milk when raw-milk prices are falling than when these prices are rising.
(B) Increases in dairy farmersâ€™ cost of producing milk are generally not passed on to consumers.
(C) Milk bottlers take substantially greater markups on bottled milk when its price is low for an extended period than when it is high for an extended period.
(D) Milk bottlers generally do not respond to a decrease in raw-milk prices by straightaway proportionately lowering the price of the bottled milk they sell.
(E) Consumers tend to complain more about the price they pay for bottled milk when dairy farmers are earning their smallest profits.

This is an inference questions.
from
When the raw-milk price is falling, however, the markups are greatest.

we can draw inference D
Manager
Joined: 10 Jan 2006
Posts: 116
Followers: 1

Kudos [?]: 6 [0], given: 0

### Show Tags

03 Apr 2006, 12:27
one more for 'D'
Manager
Joined: 30 Jan 2006
Posts: 145
Followers: 1

Kudos [?]: 25 [0], given: 0

### Show Tags

03 Apr 2006, 18:08
C it is.

Here's my attempt to explain:
A - it's the other way around.
B & E are out because dairy farmers is out of scope.
D - nothing is indicated about the timing of price-adjustments to fluctuations in raw-milk prices. Also, a little bit extreme when stating generally do not respond
Senior Manager
Joined: 08 Jun 2004
Posts: 497
Location: Europe
Followers: 1

Kudos [?]: 72 [0], given: 0

### Show Tags

03 Apr 2006, 20:10
'D' it is.

Complaints that milk bottlers take enormous markups on the bottled milk sold to consumers are most likely to arise when least warranted by the actual spread between the price that bottlers pay for raw milk and the price at which they sell bottled milk. The complaints occur when the bottled-milk price rises, yet these price increases most often merely reflect the rising price of the raw milk that bottlers buy from dairy farmers. When the raw-milk price is rising, the bottlersâ€™ markups are actually smallest proportionate to the retail price. When the raw-milk price is falling, however, the markups are greatest.

(D) Milk bottlers generally do not respond to a decrease in raw-milk prices by straightaway proportionately lowering the price of the bottled milk they sell.

'D' is clearly explained by the last 2 sentences.
03 Apr 2006, 20:10
Similar topics Replies Last post
Similar
Topics:
19 In response to a high unemployment rate and to complaints 16 19 Oct 2013, 23:50
2 Pasteurization of milk is a process by which milk is heated 7 19 Mar 2011, 12:08
2 Complaints that milk bottlers take enormous markups on the 5 14 Jul 2010, 01:59
Complaints that milk bottlers take enormous markups on the 4 22 Feb 2008, 02:42
Complaints that milk bottlers take enormous markups on the 4 16 Mar 2007, 09:33
Display posts from previous: Sort by