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Manager
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Fish currently costs about the same at seafood stores [#permalink]
 23 Sep 2006, 08:36
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Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.
For the purposes of evaluating the argument, it would be most useful to know
whether.
(A)more fish wholesalers are located within the city than in the surrounding suburbs.
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
(C) The wholesale price of fish is likely to fall in the future
(D)Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs.
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.
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Manager
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E?...for some reason I can't grasp this argument..
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VP
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I would go for B...
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SVP
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(E) for me too 
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Senior Manager
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Going for (E) too.
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Director
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straight one E...
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Manager
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OA: E
can someone explain the reasoning ?
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Director
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rkatl wrote: OA: E
can someone explain the reasoning ?
The question says profit margins will be higher within the city.
However, this may not be true if the city stores decide to reduce prices sufficiently. The profit margins are a function of the price.
Hence E.
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Senior Manager
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Re: CR:see food stores [#permalink]
23 Sep 2006, 14:40
rkatl wrote: Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.
For the purposes of evaluating the argument, it would be most useful to know
whether.
(A)more fish wholesalers are located within the city than in the surrounding suburbs.
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
(C) The wholesale price of fish is likely to fall in the future
(D)Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs.
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.
Its E
The Tax breaks will benifit seafood stores within the city which will increase the profit margins.
E states that the city seafood stores might pass this benifit to its customers by reducing the price which will result in their profit margin not increasing.
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Director
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Yes E
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Manager
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Same here - E.
Profit margin will go down, if retail stores cut the sale price. So it is important to know whether the retailers within the city are going to cut the sale price or not , in order to determine whether the profit margin will increase or not.
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Senior Manager
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Why not A?
I mean since there are new tax breaks and will substantially lower the cost of doing business within the city, wouldn't it encourage more fishsailers to move within the city? Or is the question asking something contradictory?
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Manager
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If 'E'..then, because of the price reduction..the profit margin will go down in city..but the question asked is to evaluate the argument...
E will actually weaken the argument right...
Does the question "Evaluate the argument" means to find a solution to weaken the argument?
getting confused...can anyone correct my mistake..
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Manager
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Evaluate basically means if the information provided will help you in making the decision one way or the other. Doesn't necessarily to weaken, it can be to strengthen.
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Intern
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Important diff between B and E ( the only plausible choices) is that taxes have been lowered within the city while B talks about businesses nearer to the city not in it (a nd therefore do not have taxes apply to it)
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VP
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E for sure.
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