Find all School-related info fast with the new School-Specific MBA Forum

It is currently 29 Aug 2014, 02:37

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Spending on clothes in this country increased by 35% from

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 09 Sep 2004
Posts: 166
Followers: 1

Kudos [?]: 1 [0], given: 0

Spending on clothes in this country increased by 35% from [#permalink] New post 12 Nov 2004, 18:02
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (01:47) correct 0% (00:00) wrong based on 2 sessions
Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990

1. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.

2. Spending on clothes decreased in those stores that were not national chain department stores

3. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.

4. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.

5. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.
Senior Manager
Senior Manager
User avatar
Joined: 21 Jun 2004
Posts: 340
Followers: 1

Kudos [?]: 2 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Nov 2004, 18:09
C for me. :wall

Quote:
3. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets

_________________

510 on my first GMAT. 610 on second GMAT.!
The struggle continues.

Manager
Manager
User avatar
Joined: 21 Jul 2004
Posts: 121
Followers: 1

Kudos [?]: 0 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Nov 2004, 18:52
A for me. This explains why the consumer spending increased while instores revenue dropped.
Director
Director
User avatar
Joined: 16 Jun 2004
Posts: 893
Followers: 1

Kudos [?]: 9 [0], given: 0

GMAT Tests User
 [#permalink] New post 14 Nov 2004, 23:50
Both A and C are close. I am inclined towards C especially because C says that 'MOST' spending is because of price increase. May be the remaining SOME increase may be due to the mail order/catalog sales (as outlined in A). So, C is kinda a superset to A.
Director
Director
avatar
Joined: 03 Nov 2004
Posts: 870
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 Nov 2004, 07:32
The question never talks about any alternate channels, so 'A' is out of the picture. 'C' can be logically concluded from the fact that spending increased by 35% but revenues increased only by 20%
Senior Manager
Senior Manager
User avatar
Joined: 19 Oct 2004
Posts: 320
Location: Missouri, USA
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 Nov 2004, 09:58
C for me. The first thing that strikes me when I read this is HOW can there be only a 20% increase?? There must be some hidden reason then. Maybe shopping from abroad etc. C gives the perfect solution that it was due to increase in the price of goods. It is the only answer choice that is supported by all the evidence.
_________________

Let's get it right!!!!

Manager
Manager
avatar
Joined: 09 Sep 2004
Posts: 166
Followers: 1

Kudos [?]: 1 [0], given: 0

 [#permalink] New post 15 Nov 2004, 10:09
The OA is A People!
Senior Manager
Senior Manager
User avatar
Joined: 19 Oct 2004
Posts: 320
Location: Missouri, USA
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 Nov 2004, 10:12
ninomoi wrote:
The OA is A People!


OHHH!! has to be A. realised it just now. the question only speaks abt the "instores" revenue. So like A says, if we purchase via phone or anything else, then "instores" revenue will drop. Nice question.

I feel so so so silly now. Bad mistake. :cry:
_________________

Let's get it right!!!!

Director
Director
avatar
Joined: 03 Nov 2004
Posts: 870
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 Nov 2004, 10:50
I realise my oversight the question mentions revenues but I inadvertenly assumed it to be profit
Manager
Manager
avatar
Joined: 09 Sep 2004
Posts: 166
Followers: 1

Kudos [?]: 1 [0], given: 0

 [#permalink] New post 15 Nov 2004, 11:48
As we say in my place Daalu o (means thanks a lot) for the lovely discussion! :lol:
Intern
Intern
avatar
Joined: 11 Jul 2007
Posts: 8
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: CR- Clothes [#permalink] New post 01 May 2010, 22:17
what is the problem with option E please explain
Re: CR- Clothes   [#permalink] 01 May 2010, 22:17
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Worth Spending Time to Increase GMAT Score from 730 to 750+ adityaiitd 1 07 Jun 2014, 01:32
2 The country’s Commerce secretary says that spending on gmat2805 6 18 Jul 2013, 03:34
60 Experts publish their posts in the topic A way to increase from Q35-40 to Q 47 rajeevrks27 5 11 Sep 2012, 05:18
Experts publish their posts in the topic When military spending increased in Country X ten years ago, bschool83 4 10 Jul 2011, 18:58
From 1973 to 1989 total energy use in this country increased metallicafan 8 24 Mar 2011, 20:05
Display posts from previous: Sort by

Spending on clothes in this country increased by 35% from

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.