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# On a ten month period, the total monthly sales of new cars

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Manager
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On a ten month period, the total monthly sales of new cars [#permalink]  14 Feb 2013, 18:10
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Question Stats:

70% (03:55) correct 30% (00:57) wrong based on 10 sessions
On a ten month period, the total monthly sales of new cars within the country of Calistan remained constant. During this period the monthly sales of new cars manufactured by Marvel Automobile Company doubled, and its share of the new car market within Calistan increased correspondingly. At the end of this period, emission standards were imposed on new cars sold within Calistan. During the three months following this imposition, Marvel Automobile Company's share of the Calistan market declined substantialy even though its monthly sales within Calistan remained constant at the level reached in the last month of the ten-month period.

If the statements above are true, which one of the following cannot be true?

A) The total monthly sales within Calistan of new cars by companies other than Marvel Automobile Company decreased over the three months following the imposition of the emission standards.

B) Over the three months before the imposition of emission standards, the combined market share of companies other than Marvel Automobile Comapny selling new cars in Calistan decreased

C) If the emission standards had not been imposed, Marvel Automobile Company would have lost an even larger share of the number of new cars sold in Calistan than, in fact, it did.

D) A decrease in the total montly sales of new cars within Calistan will occur if the emissions standards remain in effect

E) Since the imposition of the emission standards, Marvel Automobile Company's average profit on each new car sold within Calistan has increased.

could someone please explain why answer needs to be a not b ,what is wrong with b , i dont understand ,please explain.

Thnaks and regards,
Sidd

Edit: by carcass
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Re: help required with cr [#permalink]  14 Feb 2013, 19:58
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Expert's post
siddharth86 wrote:
In a ten month period, the total monthly sales of new cars within the country of Calistan remained constant. During this period the monthly sales of new cars manufactured by Marvel Automobile Company doubled, and its share of the new car market within Calistan increased correspondingly. At the end of this period, emission standards were imposed on new cars sold within Calistan. During the three months following this imposition, Marvel Automobile Company's share of the Calistan market declined substantialy even though its monthly sales within Calistan remained constant at the level reached in the last month of the ten-month period.

If the statements above are true, which one of the following cannot be true?

A) The total monthly sales within Calistan of new cars by companies other than Marvel Automobile Company decreased over the three months following the imposition of the emission standards.

B) Over the three months before the imposition of emission standards, the combined market share of companies other than Marvel Automobile Comapny selling new cars in Calistan decreased

C) If the emission standards had not been imposed, Marvel Automobile Company would have lost an even larger share of the number of new cars sold in Calistan than, in fact, it did.

D) A decrease in the total montly sales of new cars within Calistan will occur if the emissions standards remain in effect

E) Since the imposition of the emission standards, Marvel Automobile Company's average profit on each new car sold within Calistan has increased.

could someone please explain why answer needs to be a not b ,what is wrong with b , i dont understand ,please explain.

Thnaks and regards,
Sidd

Let's analyze the argument line by line:

In a ten month period, the total monthly sales of new cars within the country of Calistan remained constant.

Say, total monthly sales of new cars = 100

During this period the monthly sales of new cars manufactured by Marvel Automobile Company doubled, and its share of the new car market within Calistan increased correspondingly.

Say, MAC sold 25 cars per month (market share: 25%) at the beginning of the period and its sales went up to 50 cars per month by the end (market share: 50%). So obviously, the other car manufacturers' sales decreased from 75 to 50.

At the end of this period, emission standards were imposed on new cars sold within Calistan. During the three months following this imposition, Marvel Automobile Company's share of the Calistan market declined substantialy even though its monthly sales within Calistan remained constant at the level reached in the last month of the ten-month period.

So now, MAC is still selling 50 cars per month but its market share has gone down substantially. This means that the other players are selling more than 50 cars now.

If the statements above are true, which one of the following cannot be true?

A) The total monthly sales within Calistan of new cars by companies other than Marvel Automobile Company decreased over the three months following the imposition of the emission standards.

The total monthly sales of companies other than MAC has actually increased (so that MAC is still selling 50 cars but its market share has gone down). Hence, this cannot be true. Answer (A)

B) Over the three months before the imposition of emission standards, the combined market share of companies other than Marvel Automobile Comapny selling new cars in Calistan decreased

We know that the combined market share of the companies other than MAC decreased in the 10 month period before the imposition. So it is quite probable that in the 3 month period before the imposition (notice "before the imposition"), the combined market share of other than MAC companies decreased. This can be true. Not the answer.
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 05:48
Expert's post

rules-for-posting-in-verbal-gmat-forum-134642.html

Thank you

regards
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KUDOS is the good manner to help the entire community.

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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 06:36
Hi
Can anyone pls provide the OA...i think its E.
I say E half heartedly, the crux of the argument is that
A company market share was high, in new car's market. But the share declined after the emission rule; however profit remained unchanged..Its for sure that the company increased the cost of each car...

Pls update the OA.

Archit
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 08:09
Archit143 wrote:
Hi
Can anyone pls provide the OA...i think its E.
I say E half heartedly, the crux of the argument is that
A company market share was high, in new car's market. But the share declined after the emission rule; however profit remained unchanged..Its for sure that the company increased the cost of each car...

Pls update the OA.

Archit

Hello Archit,

Option E talks about Average Profit which is outside the scope of the passage.

The passage talks about share of MAC and the monthly sales. It does not talk about profits on car sales.
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 09:58
Yes thats true i agree to your point , but i selected option E as i think it is one of the probable assumption for profit to remain constant after decrease in the market share...If you go by POE, it will be difficult to take a stand...all answers seems to be straying away from central thought.

Archit
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 10:47
Archit143 wrote:
Yes thats true i agree to your point , but i selected option E as i think it is one of the probable assumption for profit to remain constant after decrease in the market share...If you go by POE, it will be difficult to take a stand...all answers seems to be straying away from central thought.

Archit

No information is given about profits, only information given is that the sales remained constant.

3 months after the implementation of regulations, the overall % share of mac went down despite its sales remaining constant. from this we can infer that the sales of manufacturers other than mac went up.

Option A, clearly states the opposite of it, it states that the sales of other cars decreased, this cannot be true and hence is the correct answer.
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 11:14
IMO its A....I did not read any other option (I know that's a suicidal thing to do on gmat) but somehow I was convinced that A cannot happen... Imagine a pie chart of this argument and things shall be very clear
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Re: On a ten month period, the total monthly sales of new cars [#permalink]  15 Feb 2013, 11:24
Sorry, I committed a grave mistake got carried away by the tag of the question..Did not go through the stem...Its a cannot be true question.....

Archit
Re: On a ten month period, the total monthly sales of new cars   [#permalink] 15 Feb 2013, 11:24
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