AbdurRakib wrote:
GMAT® Official Guide 2017Practice QuestionQuestion No.: CR 616
Page: 531
Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer model that sells for significantly less than any other model. Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price. Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.
Which of the following is an assumption on which the argument depends?
(A) Infotek achieved the lower price of the new model by using components of lower quality than those used by other manufacturers.
(B) The main reason cited by consumers in Katrovia for replacing a personal computer is the desire to have an improved model.
(C) Katrovians in households that already have computers are unlikely to purchase the new Infotek model as an additional computer for home use.
(D) The price of other personal computers in Karovia is unlikely to drop below the price of Infotek’s new model in the near future.
(E) Most personal computers purchased in Katrovia are intended for home use.
Solutionpassage analysis Infotek, a computer manufacturer in Katrovia, has just introduced a new personal computer modelA new personal computer model has been recently put on the market by Infotek, a computer manufacturer in Katrovia
that sells for significantly less than any other model.This new model is significantly lower priced than any other model on the market.
Market research shows, however, that very few Katrovian households without personal computers would buy a computer, regardless of its price.
But it is proved by market research that there are very few (a very small number) Katrovian households (that do not already own a personal computer) that would buy a computer even if it is priced lower than the other models.
(We can infer here that these Katrovian households are not price conscious)
Therefore, introducing the new model is unlikely to increase the number of computers in Katrovian homes.Conclusion: Introducing the new personal computer model significantly lower priced than other models is unlikely to increase the number of computers in Katrovian homes because very few Katrovian households without personal computers would buy a computer, regardless of its price
pre-thinking Falsification questionIn what scenario is introducing the new personal computer model, likely to increase the number of computers in Katrovian homes?
Given that
the new model is significantly lower priced than the other models,
market research shows, that very few Katrovian households that do not have personal computers would buy the new model.
Thought Process The author’s reasoning is based on a single fact- that Katrovian households that do not have a computer will not be motivated to buy one even if the price is much lower than all other computers in the market. And as a result, the introduction of the lower priced new model will not lead to an overall increase in the number of computers in Katrovian households. But the author here fails to account for Katrovian households that already have computers.
Falsification conditionWhat if the Katrovian households with personal computers buy another computer because of its low price?
In that case the number of computers in Katrovian homes would increase bringing down our conclusion
AssumptionThe Katrovian households that already have personal computers are not going to buy the new model even if it is significantly lower priced than any other model.
Answer Choice AnalysisAThis option tells us how Infotek achieved its lower priced model. It did so by using components of lower quality than those used by other manufacturers
Does it matter how Infotek achieved the low price? Because market research shows the price is not an incentive for households without a computer. What if the components used had been of good quality and higher priced? Would the households then buy it? They may or may not since they are not price conscious and we do not know about their quality consciousness. My conclusion might still stand.
Hence, this is not the answer
BThis option means the main reason given by consumers in Katrovia for replacing a personal computer is to get a model that is an improved one.
This option falls flat. It is not given to us that the new model is an improved one or not. We only know it has a significantly lower price than the others. And we only know that price is not a motivation for new computers buyers.
Does this option have to be true? Let us say this was not the main reason cited. Then would my conclusion that “introducing the new personal computer model is unlikely to increase the number of computers in Katrovian homes” break down? No. The reason behind buying another computer could be anything.
Hence, it is not the answer.
CThis is in line with our pre- thinking assumption” The Katrovian households that already have personal computers are not going to buy the new model even if it is significantly lower priced than any other model.”
Hence, it is the correct answer
DThe option simply says that the price of the other computers will not drop lower than the price of Infotek’s new model in the near future.
Is that why the number of computers in Katrovian households not going to increase? The Katrovian non-computer users are not price conscious. So, whether the price of other computers drops or not, they are not going to buy the computers anyways.
Hence, this is not the answer.
EThis option says the majority of the computers purchased are to be used at homes.
The passage clearly states that we are talking about personal computers for the households. So, the option is partially stating an idea already mentioned in the passage. The part about majority is not applicable to our argument since we are only talking about the computers in the households.
Hence, this option is not correct.
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