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# Over the last five years, technological improvements have

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Over the last five years, technological improvements have [#permalink]

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15 Aug 2010, 21:09
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Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged.

Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed?

A) The price per gallon of gasoline has dropped by 25% over the last five years.
B) Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices.
C) Improvements in aerodynamics have made regular gas-powered cars more efficient to operate.
D) Relative to the number of gas-powered cars, there are very few electric cars on the road today.
E)When the price of gasoline rises, more people are willing to take public transportation to work.

This is a question from Kaplan Online CAT. I somehow am not convinced with the OA. Any help or explanation for OA would be greatly appreciated.
[Reveal] Spoiler: OA

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Re: Kaplan CAT: Electric Car/gas-powered car [#permalink]

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15 Aug 2010, 23:37
C it is.

The argument:

Electric car: cost of manufacturing and Operate is cheaper
The Price different of gas per gallon between Electric car and Gas car still the same.

Basically, since electric car now cheaper to operate we expect the different in gas price to be reduced. But what if Gas car also cheaper to operate? Then ofcourse both are better, both are cheaper by the same amount then there is no reason for the different in gas price to change.
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Re: Kaplan CAT: Electric Car/gas-powered car [#permalink]

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16 Aug 2010, 00:25
gautrang wrote:
C it is.

The argument:

Electric car: cost of manufacturing and Operate is cheaper
The Price different of gas per gallon between Electric car and Gas car still the same.

Basically, since electric car now cheaper to operate we expect the different in gas price to be reduced. But what if Gas car also cheaper to operate? Then ofcourse both are better, both are cheaper by the same amount then there is no reason for the different in gas price to change.

I would say that the option A) The price per gallon of gasoline has dropped by 25% over the last five years. provides much stronger evidence to suggest that the Gas Car has become cheaper to operate with the fall in price of gasoline. I would love to know how did you eliminate this option.
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Re: Kaplan CAT: Electric Car/gas-powered car [#permalink]

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16 Aug 2010, 02:49
arundas wrote:

I would say that the option A) The price per gallon of gasoline has dropped by 25% over the last five years. provides much stronger evidence to suggest that the Gas Car has become cheaper to operate with the fall in price of gasoline. I would love to know how did you eliminate this option.

A is incorrect because the premise said: "Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged."

The cost of gasoline remained unchanged. If according to A, the price of gas dropped, surely this cost should have dropped as well. A contradicts the premise.
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Re: Kaplan CAT: Electric Car/gas-powered car [#permalink]

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16 Aug 2010, 04:33
you need to show the cost per gallon of gasoline has not changed, this can be done by

a) show that gasoline cars have gotten more efficient.
b) electric cars consume more electricity and the electricity comes from gas powered stations

A) The price per gallon of gasoline has dropped by 25% over the last five years. <of no use>
B) Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices. <does not help explain why cost per gallon of gasoline is the same? >
C) Improvements in aerodynamics have made regular gas-powered cars more efficient to operate.<bingo>
D) Relative to the number of gas-powered cars, there are very few electric cars on the road today. <does it matter>
E)When the price of gasoline rises, more people are willing to take public transportation to work.<does it matter>
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Re: Kaplan CAT: Electric Car/gas-powered car [#permalink]

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17 Aug 2010, 12:38
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Hi Folks,

Let's apply the Kaplan method here.

Step 1: Identify the Question Type. The word 'explain' gives it away--this is an Explain question. That means that we are not dealing with an argument--there is no evidence, assumption, or conclusion. Rather, we have two facts that appear to contradict--and that's what we'll look for.

Step 2: Untangle the Stimulus. This is a tricky prompt, and there seems to be some trouble understanding it. The prompt references "the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered". And this point has nothing do do with the actual price of gas!

Although picking numbers is usually a math strategy, it can also be useful in situations like this to illustrate a complex stimulus. In this case, let's imagine that an electric car costs $5000 more than a gas car. And let's imagine that the electric burns 1000 gallons less fuel over its lifetime. If gas costs$5/gallon, then these to cars are a financial wash. The $5000 you spent on the electric car is exactly canceled by the$5 * 1000 dollars you save on gasoline. On the other hand, gas at $4 means you lose money on an electric car, and gas at$6 means you save money with an electric car. In other words, the actual value of gas is completely irrelevant to the prompt itself--we're talking about a hypothetical price that tells us which car is more efficient!

So now that we've decoded the prompt, we can paraphrase it--or, specifically, paraphrase the contradiction. In this case, we know two things: that electric cars have improved in an absolute sense, but that price point remains the same. Thus, our paraphrase is

"The efficiency of electric cars has improved in absolute terms, but it hasn't improved relative to gas-powered cars."

Once we've boiled it down to these terms, the answer should jump out at us. How could electric cars improve in efficiency, but still not be better than gas cars? The gas cars must be getting better too!

Step 4: Evaluate the answer choices.

So now we know what we're looking for: something that shows how gas-powered cars are becoming more efficient. With that prediction in mind, (C) stands out as the best match and the correct answer.
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Prepare with Kaplan and save $150 on a course! Kaplan Reviews Director Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing. Affiliations: University of Chicago Booth School of Business Joined: 26 Nov 2009 Posts: 997 Location: Singapore Followers: 22 Kudos [?]: 749 [0], given: 36 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 17 Aug 2010, 13:39 KapTeacherEli Does this look like a valid explanation? Visualizing the costs Case A --------Gas car uses 2 gallons per mile of gas ---------Electric car uses 1 gallon per mile of gas Break even = the rise (cost per gallon) of gasoline prices at which it would become more economical to operate an electric car Case B Electric car improves and becomes more fuel efficient 1 to 0.5 gallon / mile --------Gas car uses 1.5 gallon per mile of gas ---> To keep the difference constant ---------Electric car uses 0.5 gallons per mile of gas Basically : Two numbers - keep the difference constant - if one rises the other will rise. One falls the other will fall. _________________ Please press kudos if you like my post. Manager Joined: 28 Feb 2010 Posts: 176 WE 1: 3 (Mining Operations) Followers: 7 Kudos [?]: 32 [0], given: 33 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 17 Aug 2010, 23:36 Good explanation by Kaplan Teacher Eli. Kudos to you !! I choose C, but I went the other way. Let me know, If I am incorrect. We are looking for Cost per gallon of Gasoline. If everything is compared taking base as Gasoline, then change in Gasoline price will affect the cost of both equally. So , its ONLY the efficiency of cars that is going to creat a difference. Moreover, I just got a catch of Manhattan SC Guide, that Economical : Thrifty, Efficient. Had it been Economic, the scenario would have been different. (Dont know how far this fact helps to solve the problem ) _________________ Regards, Invincible... "The way to succeed is to double your error rate." "Most people who succeed in the face of seemingly impossible conditions are people who simply don't know how to quit." Manager Joined: 29 Dec 2009 Posts: 122 Location: india Followers: 2 Kudos [?]: 20 [0], given: 10 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 18 Aug 2010, 01:29 C IT IS Senior Manager Joined: 23 May 2010 Posts: 441 Followers: 5 Kudos [?]: 103 [0], given: 112 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 18 Aug 2010, 10:01 we are comapring two cars here: electric cars and regular fuel cars.... question : cost to run and maintain electric cars has gone down == but breakeven has point has not changed .. it can only happen if regualr fuel cars have improved .... hence c Intern Joined: 31 Jul 2010 Posts: 17 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 30 Aug 2010, 05:43 C it is arundas wrote: Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged. Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed? A) The price per gallon of gasoline has dropped by 25% over the last five years. - This is applicable to both types of cars. Hence, N/A. B) Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices. - N/A C) Improvements in aerodynamics have made regular gas-powered cars more efficient to operate.- Yes. Correct. Although the electric cars have become cheaper to operate, they still cannot compete with the regular cars economically, as the regular cars have become more fuel efficient. D) Relative to the number of gas-powered cars, there are very few electric cars on the road today.-N/A E)When the price of gasoline rises, more people are willing to take public transportation to work. - N/A This is a question from Kaplan Online CAT. I somehow am not convinced with the OA. Any help or explanation for OA would be greatly appreciated. Senior Manager Affiliations: Volunteer Operation Smile India, Creative Head of College IEEE branch (2009-10), Chief Editor College Magazine (2009), Finance Head College Magazine (2008) Joined: 25 Jul 2010 Posts: 471 Location: India WE2: Entrepreneur (E-commerce - The Laptop Skin Vault) Concentration: Marketing, Entrepreneurship GMAT 1: 710 Q49 V38 WE: Marketing (Other) Followers: 13 Kudos [?]: 145 [0], given: 24 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 06 Sep 2010, 10:41 C _________________ Kidchaos http://www.laptopskinvault.com Follow The Laptop Skin Vault on: Facebook: http://www.facebook.com/TheLaptopSkinVault Twitter: http://www.twitter.com/LaptopSkinVault Consider Kudos if you think the Post is good Unless someone like you cares a whole awful lot. Nothing is going to change. It's not. - Dr. Seuss Intern Joined: 18 Jun 2011 Posts: 1 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: Kaplan CAT: Electric Car/gas-powered car [#permalink] ### Show Tags 18 Jun 2011, 19:06 Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged. Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed? A) The price per gallon of gasoline has dropped by 25% over the last five years. B) Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices. C) Improvements in aerodynamics have made regular gas-powered cars more efficient to operate. D) Relative to the number of gas-powered cars, there are very few electric cars on the road today. E)When the price of gasoline rises, more people are willing to take public transportation to work. MY answer is C..... OPTION A is wrong because from the paragraph it says gasoline cars are economical ,from that we cannot say gasoline price is cheap...ambiguity of the price is there OPTION B is also wrong because only production cost is reduced but to what extent,it is not mentioned that the price is comparable to gasoline cars OPTION D cannot be the answer because question is different OPTION E cannot be the answer because question is different Current Student Joined: 14 May 2012 Posts: 74 Location: United States Concentration: Finance, Strategy GMAT 1: 710 Q49 V38 GPA: 3.8 WE: Corporate Finance (Venture Capital) Followers: 0 Kudos [?]: 80 [0], given: 15 Gasoline cars vs electric [#permalink] ### Show Tags 29 Jun 2012, 03:49 Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged. Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed? The price per gallon of gasoline has dropped by 25% over the last five years. Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices. Improvements in aerodynamics have made regular gas-powered cars more efficient to operate. Relative to the number of gas-powered cars, there are very few electric cars on the road today. When the price of gasoline rises, more people are willing to take public transportation to work. I am unable to choose bw a and c Kaplan GMAT Instructor Joined: 25 Aug 2009 Posts: 644 Location: Cambridge, MA Followers: 83 Kudos [?]: 277 [0], given: 2 Re: Gasoline cars vs electric [#permalink] ### Show Tags 29 Jun 2012, 21:21 kapilhede17 wrote: Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged. Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed? The price per gallon of gasoline has dropped by 25% over the last five years. Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices. Improvements in aerodynamics have made regular gas-powered cars more efficient to operate. Relative to the number of gas-powered cars, there are very few electric cars on the road today. When the price of gasoline rises, more people are willing to take public transportation to work. I am unable to choose bw a and c I posted an explanation earlier in the thread; take a look, and let me know if you have any specific questions! _________________ Eli Meyer Kaplan Teacher http://www.kaptest.com/GMAT Prepare with Kaplan and save$150 on a course!

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Re: Over the last five years, technological improvements have [#permalink]

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30 Jun 2012, 02:24
This stimulus is more intertwined than any encountered on the OG and OG verbal . Wonder why kaplan does this ......
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Re: Over the last five years, technological improvements have [#permalink]

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30 Jun 2012, 18:06
kapilhede17 wrote:
This stimulus is more intertwined than any encountered on the OG and OG verbal . Wonder why kaplan does this ......
Hi kapilhede,

Can you explain what you mean by "intertwined?"
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Re: Over the last five years, technological improvements have [#permalink]

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16 Jan 2014, 12:03
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09 Oct 2015, 17:00
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Over the last five years, technological improvements have significantl [#permalink]

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16 May 2016, 19:50
Over the last five years, technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars. Nevertheless, the cost per gallon of gasoline at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged.

Which of the following, if true, would do the most to explain why electric cars have become cheaper to operate but break-even point between electric and gas cars has not changed?

a. The price per gallon of gasoline has dropped by 25% over the last five years.
b. Electric-car manufacturers have managed to reduce production costs despite an increase in some raw material prices.
c. Improvements in aerodynamics have made regular gas-powered cars more efficient to operate.
d. Relative to the number of gas-powered cars, there are very few electric cars on the road today.
e. When the price of gasoline rises, more people are willing to take public transportation to work.
Over the last five years, technological improvements have significantl   [#permalink] 16 May 2016, 19:50

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