Find all School-related info fast with the new School-Specific MBA Forum

It is currently 16 Sep 2014, 01:51

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Fish currently costs about the same at seafood stores

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 03 Jul 2006
Posts: 179
Followers: 1

Kudos [?]: 3 [0], given: 0

GMAT Tests User
Fish currently costs about the same at seafood stores [#permalink] New post 23 Sep 2006, 07:36
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions
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.
Manager
Manager
User avatar
Joined: 13 Sep 2006
Posts: 212
Followers: 2

Kudos [?]: 1 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 07:53
E?...for some reason I can't grasp this argument..
VP
VP
avatar
Joined: 28 Mar 2006
Posts: 1390
Followers: 2

Kudos [?]: 18 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 08:02
I would go for B...
SVP
SVP
User avatar
Joined: 01 May 2006
Posts: 1816
Followers: 8

Kudos [?]: 89 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 08:56
(E) for me too :)
Senior Manager
Senior Manager
User avatar
Joined: 13 Jul 2006
Posts: 327
Followers: 1

Kudos [?]: 2 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 09:16
Going for (E) too.
_________________

A well-balanced person is one who has a drink in each of his hands.

Director
Director
avatar
Joined: 10 Oct 2005
Posts: 532
Location: US
Followers: 1

Kudos [?]: 8 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 10:36
straight one E...
Manager
Manager
avatar
Joined: 03 Jul 2006
Posts: 179
Followers: 1

Kudos [?]: 3 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 12:47
OA: E

can someone explain the reasoning ?
Director
Director
User avatar
Joined: 06 May 2006
Posts: 782
Followers: 3

Kudos [?]: 14 [0], given: 0

GMAT Tests User
 [#permalink] New post 23 Sep 2006, 13:15
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.
Senior Manager
Senior Manager
User avatar
Joined: 11 Jul 2006
Posts: 385
Location: TX
Followers: 1

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

GMAT Tests User
Re: CR:see food stores [#permalink] New post 23 Sep 2006, 13:40
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.
Director
Director
avatar
Joined: 17 Jul 2006
Posts: 716
Followers: 1

Kudos [?]: 8 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Sep 2006, 10:15
Yes E
Manager
Manager
avatar
Joined: 15 Aug 2006
Posts: 97
Followers: 1

Kudos [?]: 5 [0], given: 0

 [#permalink] New post 25 Sep 2006, 11:00
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.
_________________

http://gmatstuff.blogspot.com

Senior Manager
Senior Manager
User avatar
Joined: 02 Sep 2006
Posts: 256
Followers: 1

Kudos [?]: 11 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Sep 2006, 11:22
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?
Manager
Manager
avatar
Joined: 15 Aug 2006
Posts: 54
Followers: 1

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

 [#permalink] New post 25 Sep 2006, 12:35
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..
Manager
Manager
avatar
Joined: 15 Aug 2006
Posts: 97
Followers: 1

Kudos [?]: 5 [0], given: 0

 [#permalink] New post 25 Sep 2006, 17:04
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.
_________________

http://gmatstuff.blogspot.com

Intern
Intern
avatar
Joined: 26 Dec 2005
Posts: 42
Followers: 0

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

 [#permalink] New post 27 Sep 2006, 01:19
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)
VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1176
Followers: 2

Kudos [?]: 41 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Sep 2006, 17:29
E for sure.
  [#permalink] 27 Sep 2006, 17:29
    Similar topics Author Replies Last post
Similar
Topics:
13 Experts publish their posts in the topic A store currently charges the same price for each towel that Walkabout 8 27 Dec 2012, 04:47
Fish currently costs about the same at seafood stores raghavs 3 10 Oct 2010, 03:55
7 To meet the rapid rising market demand for fish and seafood, judokan 43 02 Aug 2008, 23:07
14 Experts publish their posts in the topic Fish currently costs about the same at seafood stores goalsnr 52 27 May 2008, 18:09
6 Experts publish their posts in the topic A store currently charges the same price for each towel that chiragr 30 15 Jun 2006, 16:36
Display posts from previous: Sort by

Fish currently costs about the same at seafood stores

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.