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Microeconomist: Usually, the relationship between the price

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Microeconomist: Usually, the relationship between the price [#permalink] New post 09 Aug 2009, 09:32
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Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household’s budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.

In the argument above, which of the following statements best describes the role played by each portion in boldface?

A) The first is evidence that the microeconomist provides in support of a certain prediction; the second is that prediction.

B) The first is a generalization that the microeconomist accepts as true; the second is a consequence that follows from that generalization.

C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

D) The first acknowledges a consideration against the main conclusion of the microeconomist; the second is that conclusion.

E) The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

OA :
[Reveal] Spoiler:
C

Last edited by crejoc on 09 Aug 2009, 10:05, edited 2 times in total.
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 09:49
Option C
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 09:54
soumen4u wrote:
Option C


THE OA IS C... CAN YOU EXPLAIN IT...
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 10:00
which is the part in bold?
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 10:03
Siddharth wrote:
which is the part in bold?

sorry there is some mistake, now it is correct.. sorry for the delay..
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 21:49
Cannot differentiate between choice C and choice E. What is the difference between the two?
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Re: Boldface Microeconomist [#permalink] New post 09 Aug 2009, 23:52
Nice one! Agree with C.
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Re: Boldface Microeconomist [#permalink] New post 10 Aug 2009, 00:07
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C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

E) The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.


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Re: Boldface Microeconomist [#permalink] New post 10 Aug 2009, 00:59
acer2knight wrote:
C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

E) The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.


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Thank you for the clarification.
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Re: Boldface Microeconomist [#permalink] New post 10 Aug 2009, 08:41
c
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Re: Boldface Microeconomist [#permalink] New post 10 Aug 2009, 17:00
C, good one. the first bold part is a pattern that theh economist predicts will not hold...as the word "usually..." suggest....the second part is the predicted case...
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Re: Boldface Microeconomist [#permalink] New post 14 Aug 2009, 08:56
good one..
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Re: Boldface Microeconomist [#permalink] New post 14 Aug 2009, 17:16
acer2knight wrote:

C)
I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.

very good explanation... kudos..
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Re: Boldface Microeconomist [#permalink] New post 19 Aug 2009, 08:15
crejoc wrote:
Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household’s budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.

In the argument above, which of the following statements best describes the role played by each portion in boldface?


C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

First is a microeconomic generalization and author provide additional data starting with ''however'' that it will not hold. Microeconomist prediction is ''increase in basic productions price will lead their consumption to increase'' the second one support this by implying ''he household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.''


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Re: Boldface Microeconomist [#permalink] New post 20 Oct 2009, 20:37
What are the chances that this type of question will pop up on the D day?
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Re: Boldface Microeconomist [#permalink] New post 22 Oct 2009, 11:51
I don't like the word "predict" in the option C because there is no clear sign that the Microeconomist predicts anything. So I was actually struggling between C and D. But I think D is more awkward and up-side-down.
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Re: Boldface Microeconomist [#permalink] New post 23 Oct 2009, 02:49
eresh wrote:
What are the chances that this type of question will pop up on the D day?


LOL...guees what...I just took the gmatprep today and this boldface type of question was the first I encountered.
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Re: Boldface Microeconomist [#permalink] New post 12 Sep 2011, 08:06
C
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Re: Microeconomist: Usually, the relationship between the price [#permalink] New post 13 Jan 2013, 15:26
Sorry to revisit but can anyone clarify how to determine which statement is the conclusion within this argument? I have no idea how to determine which statement was the conclusion in this question?
Re: Microeconomist: Usually, the relationship between the price   [#permalink] 13 Jan 2013, 15:26
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