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In the country of Veltria, the past two years' broad

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Re: In the country of Veltria [#permalink] New post 17 Oct 2011, 13:31
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In the country of Veltria, the past two years' broad [#permalink] New post 19 Jul 2012, 09:55
In the country of Veltria, the past two years' broad economic recession has included a business downturn in the clothing trade, where sales are down by about 7 percent as compared to two years ago. Clothing wholesalers have found, however, that the proportion of credit extended to retailers that was paid off on time fell sharply in the first year of the recession but returned to its prerecession level in the second year.

Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the proportion of credit not paid off on time?

(A) The total amount of credit extended to retailers by clothing wholesalers increased between the first year of the recession and the second year.
(B) Between the first and second years of the recession, clothing retailers in Veltria saw many of their costs, rent and utilities in particular, increase.
(C) Of the considerable number of clothing retailers in Veltria who were having financial difficulties before the start of the recession, virtually all were forced to go out of business during its first year.
(D) Clothing retailers in Veltria attempted to stimulate sales in the second year of the recession by discounting merchandise.
(E) Relatively recession-proof segments of the clothing trade, such as work clothes, did not suffer any decrease in sales during the first year of the recession.
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Re: In the country of Veltria, the past two years' broad [#permalink] New post 15 Sep 2012, 01:02
what about A? the argument is on proportion. Retired/total credit: If total increased between year one year two, the ratio would decrease in the first year. Infact, donot know about the second year. Need help on this
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Re: In the country of Veltria, the past two years' broad [#permalink] New post 28 Feb 2013, 00:37
I also go to c but spend a lot of time , nearly 3 minutes.

the reason for time consumingness is

the answer choices are long and are time consuming.
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In the country of Veltria, the past two years' broad [#permalink] New post 04 Aug 2013, 21:40
Hi everybody, I have seen following question on many threads but what I want is to understand the later part of this question. The part which is in bold is difficult for me to understand. Can anybody put it in layman/simple English. Thank you.

In the country of Veltria, the past two years' broad economic recession has included a business downturn in the clothing trade, where sales are down by about 7 percent as compared to two years ago. Clothing wholesalers have found, however, that the proportion of credit extended to retailers that was paid off on time fell sharply in the first year of the recession but returned to its prerecession level in the second year.

Which of the following, if true, most helps to explain the change between the first and the second year of the recession in the proportion of credit not paid off on time?

(A) The total amount of credit extended to retailers by clothing wholesalers increased between the first year of the recession and the second year.
(B) Between the first and second years of the recession, clothing retailers in Veltria saw many of their costs, rent and utilities in particular, increase.
(C) Of the considerable number of clothing retailers in Veltria who were having financial difficulties before the start of the recession, virtually all were forced to go out of business during its first year.
(D) Clothing retailers in Veltria attempted to stimulate sales in the second year of the recession by discounting merchandise.
(E) Relatively recession-proof segments of the clothing trade, such as work clothes, did not suffer any decrease in sales during the first year of the recession.

Last edited by Zarrolou on 04 Aug 2013, 22:06, edited 1 time in total.
Merging similar topics.
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Re: In the country of Veltria [#permalink] New post 04 Aug 2013, 21:57
Clothing wholesalers have found, however, that the proportion of credit extended to retailers that was paid off on timefell sharply in the first year of the recession but returned to its prerecession level in the second year.

let say there were 4 retailers
total revenue from all 4 let say = 100 (assume 25 from each)
now recession came now revenue dropped to 50 in first year ( assume 12.5 from each)===>so this is the proportion of credit which dropped from 25 to 12.5
now it says in second year proportion came back to normal i.e =25
now how is that possible.
let say 2 retailers close their shop so we have 2 retailer left and demand in recession is of 50 which can be equally divided between 2 i,e it will come to normal of 50...==>now this is what correct option (C) says.


(C) Of the considerable number of clothing retailers in Veltria who were having financial difficulties before the start of the recession, virtually all were forced to go out of business during its first year.

hope this helps
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Re: In the country of Veltria   [#permalink] 04 Aug 2013, 21:57
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