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Footwear designer John de los Santos last year released

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Footwear designer John de los Santos last year released [#permalink] New post 19 Nov 2012, 08:59
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Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

Which of the following is an assumption made in drawing the conclusion above?

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.

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Re: Exotic Shoes [#permalink] New post 19 Nov 2012, 09:21
Answer should be B... I think quite straightforward... Can get a hint of what the answer would be while reading the question itself... IMHO not a 700 level question.. Ofcourse this would all blow up in my face if i were wrong... :P

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Re: Exotic Shoes [#permalink] New post 20 Nov 2012, 01:33
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Hi McFauz, Agree with you. I don't see this as a 700 Level question, but here is the logic for Marcab.....

Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

So argument is that because John de los Santos made more profit per pair of shoes with his limited editions he should increase the quantity he makes of these limited edition ones to increase his profit

Which of the following is an assumption made in drawing the conclusion above?

So what is assumed in making this conclusion. In other words what else could we need to know to make the conclusion solid.

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.No we do not need to know this. This is about the % of de los Santos' product, the competitors are not relevant.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.Looks good. We do need to know this. If we reduce scarcity, we normally see price drop - but if that does not happen here then the argument is strong.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles. Nope. This would actually weaken the argument. We want more people to want bold styles for it to be true
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him. Nope. Competitors again are irrelevant here.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.Nope. Interesting perhaps, but not an assumption in the argument

So overall relatively easy. As you read the passage, the assumption is actually relatively clear. Basic knowledge dictates that a 'special edition' becomes less 'special' if lots are made, so we should always be looking out for something around that. And we find that in B
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Re: Exotic Shoes [#permalink] New post 20 Nov 2012, 17:29
I choose B after 1'21''.
a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
There is no other suppy of these sneakers but Santos. Santos will have a monopoly on those. Sound good, we save A in the list.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of
those sneakers.
Limit supply => high price. B is good, let save it in the list.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
Not relevant
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
Not relevant
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
Counterfeit, uhm, it is interesting. But the customers who paid the high price to get the real one are unlikely to buy fake products. Hence the answer is wrong.

Between A and B. B is stronger.
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Re: Footwear designer John de los Santos last year released [#permalink] New post 05 Jan 2013, 18:43
According to me the answer should be 'E'.

The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
People are paying more because those sneakers are not available anywhere else but De los Santos.
If they get same kind of product at cheaper price then obviously they will prefer those over the expensive ones.

Pls post the OA
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Re: Footwear designer John de los Santos last year released [#permalink] New post 09 Jan 2013, 08:48
Marcab wrote:
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

Which of the following is an assumption made in drawing the conclusion above?

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
Out of scope
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
Correct. It is mentioned in the counter premsie that its sold out in all markets!
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles. Out of scope

d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
It is given that it is priced higher in the counter premise
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
out of scope
OA
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Premise1-J D los released several limited editions of his exotic colored sneakers
Counter-Price higher than competition. Yet sold out and 4 times more cost in reseller market
Premise 2- production of exotic colors almost same as traditional
Conclusion- D los can earn more by increasing the exotic colored prints

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Re: Footwear designer John de los Santos last year released [#permalink] New post 10 Jan 2013, 17:28
I picked B but manjusu makes me doubt myself a little
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Re: Exotic Shoes [#permalink] New post 10 Jan 2013, 20:10
plumber250 wrote:
Hi McFauz, Agree with you. I don't see this as a 700 Level question, but here is the logic for Marcab.....

Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

So argument is that because John de los Santos made more profit per pair of shoes with his limited editions he should increase the quantity he makes of these limited edition ones to increase his profit

Which of the following is an assumption made in drawing the conclusion above?

So what is assumed in making this conclusion. In other words what else could we need to know to make the conclusion solid.

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.No we do not need to know this. This is about the % of de los Santos' product, the competitors are not relevant.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.Looks good. We do need to know this. If we reduce scarcity, we normally see price drop - but if that does not happen here then the argument is strong.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles. Nope. This would actually weaken the argument. We want more people to want bold styles for it to be true
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him. Nope. Competitors again are irrelevant here.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.Nope. Interesting perhaps, but not an assumption in the argument

So overall relatively easy. As you read the passage, the assumption is actually relatively clear. Basic knowledge dictates that a 'special edition' becomes less 'special' if lots are made, so we should always be looking out for something around that. And we find that in B



One confusuion here related to the explanation for option (C) : how we can say that "bolder style" = limited edition of the sneaker in exotic colors and prints
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Re: Footwear designer John de los Santos last year released [#permalink] New post 10 Jan 2013, 21:51
Marcab wrote:
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

Which of the following is an assumption made in drawing the conclusion above?

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.




OA
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It would be appreciated if the OA is given rather than waiting for the discussion.OA can be given and then ans can be discussed too. :!:
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Re: Footwear designer John de los Santos last year released [#permalink] New post 11 Jan 2013, 05:18
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Marcab wrote:
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.

Which of the following is an assumption made in drawing the conclusion above?

a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.

OA
[Reveal] Spoiler:
soon


The answer is (B). Let's discuss why. Then we will talk about why (A) and (E) are incorrect.

Conclusion: Make higher % of sneakers in exotic prints to earn a higher profit per unit.

An assumption is necessary to be true for the conclusion to be true. If we negate the assumption, the conclusion should not be possible. If there is a confusion, we negate the assumption and then see whether the conclusion can hold. If the conclusion can still hold, then that option is not an assumption.

What is the assumption in concluding that making more sneakers will bring higher profit per unit? The assumption is that the price of exotic print sneakers will not come down if higher % of sneakers are in exotic prints i.e. scarcity is not the reason for the higher price. If this assumption were not true and the price does come down if higher % of sneakers are made in exotic prints, then he may not be able to earn a higher profit per unit.

(A) - We are talking about limited-edition sneakers here. As long as the designers keep the exotic sneakers rare, there may not be a problem. The price may not come down. Let's assume that (A) is not true and designers do come up with similar limited edition sneakers. Still, the price may not go down.

(E) - This option has nothing to do with regular and exotic prints. If lower-budget shoemakers are able to make counterfeits, they would have been making it for all shoes. Hence, they will have no new effect on the price of the genuine de los Santos shoes.

The thing that could have a direct effect on the price of exotic shoes is how many exotic shoes there are. Answer has to be (B).
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Re: Footwear designer John de los Santos last year released   [#permalink] 11 Jan 2013, 05:18
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