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

It is currently 27 Jul 2016, 08:43
GMAT Club Tests

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

For many years,alcohol producers followed a self imposed

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
avatar
Joined: 25 Apr 2014
Posts: 154
Followers: 0

Kudos [?]: 45 [0], given: 1474

For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 07:00
7
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

68% (02:36) correct 32% (01:36) wrong based on 246 sessions

HideShow timer Statistics

For many years,alcohol producers followed a self imposed ban on advertising on television.Eventually,some producers broke the ban and began advertising their products on television.The producers who advertised on television generally charged less for their products ,and so if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise.

Which of the following must be true if the statements above are true?

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.
(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.
(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.
(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.
(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

Need help.
OA to follow after some discussions.
[Reveal] Spoiler: OA

Last edited by maggie27 on 04 Jul 2014, 07:00, edited 1 time in total.
Manager
Manager
avatar
Joined: 21 Sep 2012
Posts: 219
Location: United States
Concentration: Finance, Economics
Schools: CBS '17
GPA: 4
WE: General Management (Consumer Products)
Followers: 3

Kudos [?]: 151 [0], given: 31

Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 07:29
maggie27 wrote:
For many years,alcohol producers followed a self imposed ban on advertising on television.Eventually,some producers broke the ban and began advertising their products on television.The producers who advertised on television generally charged less for their products ,and so if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise.

Which of the following must be true if the statements above are true?

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.
(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.
(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.
(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.
(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

Need help.
OA to follow after some discussions.


B for me. If other producers also start advertising on TV, producers who are currently advertising will lose the advantage of TV advertisements. All are at par now and additionally bearing the cost of advertisements which they did not incur earlier. so all producers will raise their price to absorb the cost of advertisements and maintain their profitability atleast at earlier levels.
Intern
Intern
avatar
Joined: 19 Aug 2013
Posts: 3
Followers: 0

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

Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 07:33
IMO C As it is indicated in the premise that the alcohol producers who advertise on television were selling there product for less , it means that when the Self imposed ban was broken( By producers who were selling for less) other producers who did not advertise on TV must be costlier

OA Please
2 KUDOS received
Moderator
Moderator
User avatar
Status: It always seems impossible until it's done!!
Joined: 29 Aug 2012
Posts: 662
Location: India
GMAT 1: 680 Q47 V34
Followers: 57

Kudos [?]: 837 [2] , given: 212

GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 07:35
2
This post received
KUDOS
An inference should be a restatement of the premise. Lets check the answer choices to do the POE

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV- This is out of scope as it gives us new information and this doesn't say about the reduce in the cost for the customer, rather it says only many people will drink alcohol.

(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV- The last part of the argument says that, the overall cost will reduce for the customers- Hence this is not what we inferred from the passage and it is an assumption that they may increase the price- Not necessarily.

(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban- This looks nothing but a reword of the argument- It says that the alcohol producers who did not advertise charged more than the alcohol producers who advertise.

(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV- Not likely, this might be true- BUT not MUST BE TRUE- We may even have some alcohol producers who tend not to advertise, even if there is no ban.

(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices- Same as D. Also this is an assumption that if most of the alcohol produces decide to advertise then all of them will lower the price- Not necessarily.


So I go with C.
Manager
Manager
avatar
Joined: 22 Sep 2012
Posts: 143
Concentration: Strategy, Technology
WE: Information Technology (Computer Software)
Followers: 2

Kudos [?]: 64 [0], given: 49

Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 07:36
It seems to me that C) is the best choice.

I believe B) is incorrect because we donot have any clue to understand from the FactSet, that the trend mentioned in B) will take place.
Current Student
User avatar
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 993
Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Followers: 154

Kudos [?]: 1208 [0], given: 226

Premium Member Reviews Badge
Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 03 Jul 2014, 12:38
IMO E.

"if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise."

(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

If this trend is followed further, overall cost will decline, and E is the only statement which follows such tone.
_________________

Piyush K
-----------------------
Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time. ― Thomas A. Edison
Don't forget to press--> Kudos :)
My Articles: 1. WOULD: when to use? | 2. All GMATPrep RCs (New)
Tip: Before exam a week earlier don't forget to exhaust all gmatprep problems specially for "sentence correction".

Manager
Manager
avatar
Joined: 25 Apr 2014
Posts: 154
Followers: 0

Kudos [?]: 45 [0], given: 1474

For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 04 Jul 2014, 07:07
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered? :cry:
Moderator
Moderator
User avatar
Status: It always seems impossible until it's done!!
Joined: 29 Aug 2012
Posts: 662
Location: India
GMAT 1: 680 Q47 V34
Followers: 57

Kudos [?]: 837 [0], given: 212

GMAT ToolKit User Premium Member Reviews Badge CAT Tests
For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 04 Jul 2014, 07:34
1
This post was
BOOKMARKED
maggie27 wrote:
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered? :cry:



Hi,

There should be no new info in the inference questions.

An inference is basically a logical inference from combination of one or more premises. As i posted earlier, it is normally a restatement of the premise.

In short, the must be true/ inference questions asks to select the answer which is proven by the information in the argument. When you compare C and the information in the stimulus, you can come to a conclusion that C is just a paraphrase of the argument.

For your doubt: What happened when the ban was first broken,how would we know?

the stimulus states that, some producers eventually broke the ban- It means some producers are the first to break the ban- isn't these two related?

I feel they are.

Hope this helps.

For more understanding, please read the below articles.

1. E-GMAT- Inference Vs Assumptions.

2. Magoosh- Find the Conclusion or Inference

3. Veritas Prep- Effectively tackling Must be true questions.
Manager
Manager
avatar
Joined: 25 Apr 2014
Posts: 154
Followers: 0

Kudos [?]: 45 [0], given: 1474

For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 05 Jul 2014, 13:45
Thanks Gnpth. I understand where I made the mistake.
Kudos to u :-D
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 01 Oct 2013
Posts: 8798
Followers: 770

Kudos [?]: 159 [0], given: 0

Premium Member
Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 05 Sep 2015, 05:48
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Senior Manager
Senior Manager
avatar
Joined: 02 Dec 2014
Posts: 342
Location: Russian Federation
Concentration: General Management, Economics
WE: Sales (Telecommunications)
Followers: 0

Kudos [?]: 64 [0], given: 340

Re: For many years,alcohol producers followed a self imposed [#permalink]

Show Tags

New post 09 Nov 2015, 14:53
maggie27 wrote:
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered? :cry:

I agree with maggie27 The question stimuli says that there was a ban but not a collusion. How do we know that all producers charged the same price? Moreover, the argument says that those who advertised charged less...Less than what? Than before or less than those who didn't advertise? So i think that C is not a correct answer
_________________

"Are you gangsters?" - "No we are Russians!"

Re: For many years,alcohol producers followed a self imposed   [#permalink] 09 Nov 2015, 14:53
    Similar topics Author Replies Last post
Similar
Topics:
3 For many years, alcohol producers followed a self-imposed industry ban apoorv601 1 01 Jun 2015, 23:55
At many colleges today, regulations have been imposed that Nihit 9 01 Sep 2008, 08:49
At many colleges today, regulations have been imposed that goalsnr 16 03 Jul 2008, 19:28
At many colleges today, regulations have been imposed that MBA2ran 8 24 Nov 2006, 00:26
At many colleges today, regulations have been imposed that ak_idc 10 27 Oct 2006, 05:35
Display posts from previous: Sort by

For many years,alcohol producers followed a self imposed

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| 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®.