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In an attempt to support its major domestic bicycle

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In an attempt to support its major domestic bicycle [#permalink] New post 07 Jul 2013, 00:13
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A
B
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D
E

Difficulty:

  45% (medium)

Question Stats:

57% (02:45) correct 43% (01:52) wrong based on 82 sessions
In an attempt to support its major domestic bicycle manufacturers, country Z increased the customs duty on imported bicycles. Nevertheless, it is predicted that the increase will result in Z’s small bicycle workshops taking more customers from major domestic bicycle manufacturers than would have been taken by foreign companies if the customs duty had not been increased.

Which of the following, if true, most undermines the prediction above?
(A)Small bicycle workshops produce bicycles of higher quality than major bicycle manufacturers in country Z.
(B)In response to Z’s increasing its customs duty on imported bicycles, some countries will restrict imports of bicycles from country Z.
(C)Bicycles that were imported to country Z are very similar in quality and price to those produced by Z’s major bicycle manufacturers.
(D)Many customers consider quality to be the major criterion in selecting their bicycles.
(E)Unlike major bicycle manufacturers in country Z, small bicycle workshops produce expensive customized bicycles for professional cyclists.
[Reveal] Spoiler: OA

Last edited by guerrero25 on 07 Jul 2013, 00:44, edited 1 time in total.
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Re: In an attempt to support its major domestic bicycle [#permalink] New post 07 Jul 2013, 00:42
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guerrero25 wrote:
In an attempt to support its major domestic bicycle manufacturers, country Z increased the customs duty on imported bicycles. Nevertheless, it is predicted that the increase will result in Z’s small bicycle workshops taking more customers from major domestic bicycle manufacturers than would have been taken by foreign companies if the customs duty had not been increased.

Which of the following, if true, most undermines the prediction above?
(A)Small bicycle workshops produce bicycles of higher quality than major bicycle manufacturers in country Z.
(B)In response to Z’s increasing its customs duty on imported bicycles, some countries will restrict imports of bicycles from country Z.
(C)Bicycles that were imported to country Z are very similar in quality and price to those produced by Z’s major bicycle manufacturers.
(D)Many customers consider quality to be the major criterion in selecting their bicycles.
(E)Unlike major bicycle manufacturers in country Z, small bicycle workshops produce expensive customized bicycles for professional cyclists.

OA to follow


IMO E.

We have to weaken the conclusion:==>increase in custom duty on imported bicycle ==> the increase will result in Z’s small bicycle workshops taking more customers from major domestic bicycle manufacturers than would have been taken by foreign companies if the customs duty had not been increased.

option E says:Unlike major bicycle manufacturers in country Z, small bicycle workshops produce expensive customized bicycles for professional cyclists.
===>this clearly says that[color=#00a651] small bicycle workshops produce expensive customized bicycles===>hence increase in custom duty will not have an effect as these workshop bicycle are already expensive.
[/color]
(A)Small bicycle workshops produce bicycles of higher quality than major bicycle manufacturers in country Z.====>this will rather strengthen ..if they are producing higher quality....more customer will come to their shop.

(B)In response to Z’s increasing its customs duty on imported bicycles, some countries will restrict imports of bicycles from country Z.==>we are not worried about the foreign countries customers....hence this one misses the point.

(C)Bicycles that were imported to country Z are very similar in quality and price to those produced by Z’s major bicycle manufacturers.
doesnt say anything...how it is going to take more of it customers.

(D)Many customers consider quality to be the major criterion in selecting their bicycles.===>nothing has been given to compare the quality ...hemce this one misses the point
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Re: In an attempt to support its major domestic bicycle [#permalink] New post 07 Jul 2013, 00:48
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ANALYZE THE STIMULUS:

Fact: country Z increased the customs duty on imported bicycles.
Conclusion: the increase will result in Z’s small bicycle workshops taking more customers from major domestic bicycle manufacturers than would have been taken by foreign companies if the customs duty had not been increased.
Assumption: Small bicyle workshops can manufacture same quality but cheaper bicycles than domestic bicycle manufactures do.

To weaken:
(1) Show that small bicycle workshops do not manufacture cheaper bicycles than domestic bicycles manufacture do.
--OR--
(2) Show that small bicycle workshops enter a different market segment ==> they do not compete to domestic bicycle manufacture.


ANALYZE EACH ANSWER:

(A)Small bicycle workshops produce bicycles of higher quality than major bicycle manufacturers in country Z.
Wrong. That strengthen, not weaken. Nobody wants to buy less quality products.

(B)In response to Z’s increasing its customs duty on imported bicycles, some countries will restrict imports of bicycles from country Z.
Wrong. Does not help to weaken the conclusion “Small workshops will take more customers of domestic manufactures”.

(C)Bicycles that were imported to country Z are very similar in quality and price to those produced by Z’s major bicycle manufacturers.
Wrong. Does not help to weaken “Small workshops will take more customers of domestic manufactures”

(D)Many customers consider quality to be the major criterion in selecting their bicycles.
Wrong. Customers consider quality, but who produces more quality bicycles? Small workshops or domestic manufactures? We don’t know.

(E)Unlike major bicycle manufacturers in country Z, small bicycle workshops produce expensive customized bicycles for professional cyclists.
Correct. E says small workshops enters a different market segment – expensive customized bicycles, so they will not compete directly to domestic manufactures.

Waiting for OA.
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Re: In an attempt to support its major domestic bicycle   [#permalink] 07 Jul 2013, 00:48
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