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

It is currently 11 Jul 2014, 12:54

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
User avatar
Joined: 28 Feb 2011
Posts: 91
Followers: 0

Kudos [?]: 31 [0], given: 2

Re: CR-Fish stores [#permalink] New post 10 Jun 2011, 13:45
E for me..
Have a nice and productive weekend everyone. :)
_________________

Fight till you succeed like a gladiator..or doom your life which can be invincible

Manager
Manager
avatar
Joined: 27 Jul 2010
Posts: 97
Location: Sweden
Concentration: Finance, International Business
Schools: Stockholm School of Economics (MSc Finance) - Class of 2014
GMAT 1: 720 Q49 V40
GPA: 4
Followers: 3

Kudos [?]: 19 [0], given: 6

GMAT Tests User
Re: CR-Fish stores [#permalink] New post 11 Jun 2011, 00:43
E works best.
Manager
Manager
User avatar
Joined: 01 Jan 2011
Posts: 79
Schools: INSEAD,IIMA,IIMB
Followers: 0

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

GMAT Tests User
Re: CR-Fish stores [#permalink] New post 16 Jun 2011, 06:07
tough one for me to do within a minute n half...i fell for D..
thanks guys to point out it as E...good learning :-)
_________________

_________________________
Try and you will succeed !

VP
VP
avatar
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1365
Followers: 10

Kudos [?]: 130 [0], given: 10

GMAT Tests User
Re: CR-Fish stores [#permalink] New post 16 Jun 2011, 18:04
E if the prices are set low then profit margin may not increase.Hence the OA.
_________________

Visit -- http://www.sustainable-sphere.com/
Promote Green Business,Sustainable Living and Green Earth !!

Manager
Manager
avatar
Status: Bunuel's fan!
Joined: 08 Jul 2011
Posts: 238
Followers: 0

Kudos [?]: 15 [0], given: 55

Re: Fish currently costs about the same at seafood stores [#permalink] New post 16 May 2012, 10:21
Btween C and E as contenders, I picked E- the most sound answer.
Intern
Intern
avatar
Joined: 11 Jun 2012
Posts: 6
Followers: 0

Kudos [?]: 1 [0], given: 5

Re: Fish currently costs about the same at seafood stores [#permalink] New post 02 Jul 2012, 09:26
The answer for me is E because if the price is same in Eastville and its suburbs and in spite of the low taxes in the city the seafood stores do not lower their price then why would customer from suburbs come to to the city when they can buy it near their homes at the same price. So for the argument to hold true, we need to know if the price of the fish would be priced lower.
Intern
Intern
User avatar
Joined: 01 Jun 2012
Posts: 2
Followers: 0

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

Re: Fish currently costs about the same at seafood stores [#permalink] New post 03 Jul 2012, 02:04
Answer E is correct

For ensuring the argument, one should identify whether the purchasing price of fish will remain same or tumble due to the market mechanism like buyer compete one with another for private benefit if there is opportunity for decreasing the price.
For example
Previous: city $ 50, suburban $50 (equal margin 15)
Future: city $40, suburban $ 50 (equal margin 15) :idea:
Manager
Manager
User avatar
Joined: 10 Oct 2011
Posts: 65
Location: Korea, Republic of
Concentration: Finance, Strategy
GMAT Date: 08-16-2012
GPA: 3.05
WE: Engineering (Energy and Utilities)
Followers: 0

Kudos [?]: 16 [0], given: 36

GMAT Tests User
Re: Fish currently costs about the same at seafood stores [#permalink] New post 03 Jul 2012, 05:40
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

My 2 cents,

For an evaluation problem like this, the answer choice should be able to either strengthen or weaken the argument.

Choice D,
if assuming true, the conclusion will be strengthened. -> Profit margin in the city will be increased.

Then,
revert the choice D -> Fish hasn't always cost about the same at blah-blah.
if assuming true, you don't know whether the cost in city is less or more than the ones in the suburbs.
because there are two possible cases for the fish
1) $ in city > $ in suburb
2) $ in city < $ in suburb

Choice E,
Either you revert the choice or you assume the choice to be true, the conclusion will be either strengthened or weakened.

Choice E wins.

Please correct my reasoning if wrong.
_________________

Luck is the additional surplus on the way to one's constant effort.

Manager
Manager
User avatar
Joined: 28 Jul 2011
Posts: 213
Followers: 0

Kudos [?]: 25 [0], given: 13

Re: Fish currently costs about the same at seafood stores [#permalink] New post 03 Jul 2012, 07:45
I will vote for E because

question is asking to "evaluating the argument" - when u evaluate an argument we generally weaken the conclusion and the answer choices are Premises

Conclusion: "in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores"

Premise 1: new tax breaks will substantially lower the cost of doing business within the city.
premise 2: Fish currently costs about the same throughout Eastville and its surrounding suburbs

(A) More fish wholesalers are located within the city than in the surrounding suburbs
--> Out of scope - not talking about number of wholesales

(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
--> Out of scope ardument doesnot talk about relocating doesnot impact out conclusion

(C) The wholesale price of fish is likely to fall in the future
--> already a premise cannot usee it again

(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs
--> already a premise cannot usee it again

(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores
--> if they set prices that are lower, then will weaken the conclusion of higher profit margins

hope that helps :)
Intern
Intern
avatar
Joined: 04 Apr 2013
Posts: 15
Concentration: Finance, Economics
Followers: 0

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

Re: Fish currently costs about the same at seafood stores [#permalink] New post 14 Jun 2013, 04:58
Answer is E.

It's out of D or E for sure, BUT..

Question states, 'Therefore, in the future,'.. so we're looking ahead, not at past prices which is why D is incorrect. It is not relevant that historically prices are the same in the city and the suburbs.

Looking at the effect the tax break will have going forward i.e. in future, hence E.
Senior Manager
Senior Manager
avatar
Joined: 19 Oct 2010
Posts: 274
Location: India
GMAT 1: 560 Q36 V31
GPA: 3
Followers: 6

Kudos [?]: 29 [0], given: 26

GMAT Tests User
Re: Fish currently costs about the same at seafood stores [#permalink] New post 22 Jun 2013, 05:17
This one's an E. And this is why:

(A) More fish wholesalers are located within the city than in the surrounding suburbs
Does not affect the conclusion in any way.

(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
Nope. Irrelevant.

(C) The wholesale price of fish is likely to fall in the future
This comes close, but is too isolated to one part of the conclusion.

(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs
Again worded in such a way that seems to tackle the argument and can seem closer than C, and therefore can be misleading. It's incorrect because it talks about the past not the future.

(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores
This is the one! Knowing this will ascertain whether profit margins will be higher or will remain the same.
_________________

petrifiedbutstanding

Intern
Intern
avatar
Joined: 17 Jan 2012
Posts: 16
Followers: 0

Kudos [?]: 5 [0], given: 6

GMAT ToolKit User CAT Tests
Re: Fish currently costs about the same at seafood stores [#permalink] New post 23 Jun 2013, 17:20
Answer: E

The conclusion of the passage says that the profit margins in the city would be higher compared to that of the suburbs due to the tax breaks in the city.

Hence, the most important information that we would need to know to determine the profits would be how the prices are affected in the city (or the suburbs) after this change. If the prices are lowered in the city than the profit margins would reduce. If the prices in the suburbs have been reduced to match the margins in the city, then profit margin in the city would remain equal to that of the suburbs.

Giving 'E' as the option.
Expert Post
GMAT Pill Instructor
User avatar
Joined: 14 Apr 2009
Posts: 1486
Location: New York, NY
Followers: 276

Kudos [?]: 601 [0], given: 5

Re: Fish currently costs about the same at seafood stores [#permalink] New post 24 Jun 2013, 10:46
Expert's post
Yes, the thinking as you go through (E) to determine whether it's a critical variable:

Step 1: Figure out the two states of the answer choice

(1) City prices will be LOWER than suburban prices
(2) City prices will NOT be lower than suburban prices (perhaps same price, OR higher)


If (1), this means lower profit margin. The profit margin gained through tax breaks in the city is offset. No change in profit margin potentially -- weakens argument
If (2), city prices are at least the same or higher. If the same, then profit margin will be higher (strengthens argument). If city prices higher, then profit margin even higher (strengthens argument).

Using the gmatpill cr framework approach for evaluate questions, we found a critical variable where in one state it weakens the argument, in the other it strengthens. This it's "useful to know" to help us evaluate the argument.
_________________


... and more


Image What's Inside GMAT Pill?

Zeke Lee, GMAT Pill Study Method (Study Less. Score More.)


GMAT Pill Reviews | GMAT PILL Free Practice Test

Re: Fish currently costs about the same at seafood stores   [#permalink] 24 Jun 2013, 10:46
    Similar topics Author Replies Last post
Similar
Topics:
7 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
6 To meet the rapid rising market demand for fish and seafood, judokan 43 02 Aug 2008, 23:07
Fish currently costs about the same at seafood stores rkatl 15 23 Sep 2006, 07:36
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  

Go to page   Previous    1   2   3   [ 53 posts ] 



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®.