Bunuel wrote:
A local hardware store is concerned that its sales will diminish when a competing hardware store opens in the same area next month. However, it is actually more likely that the existing store’s sales will increase. Over the next few months, due to high demand for mixeduse residential and commercial buildings, over three times as many construction projects will be started in the area as were started over the past five years.
The argument above depends on which of the following assumptions?
(A) The managers of the new construction projects will purchase an equal amount of material from both hardware stores.
(B) The construction projects will require the purchase of materials that are sold at the existing hardware store.
(C) The materials sold at the existing store are higher in quality than those to be sold at the new hardware store.
(D) The area revitalization spurred by new mixed-use developments will encourage local residents to perform improvements on their own homes.
(E) The existing hardware store will lower its prices below those of its competitors to attract new customers.
Kaplan Official Explanation
STEP 1: IDENTIFY THE QUESTION TYPEThe question directly asks for an assumption, making this an Assumption question.
STEP 2: UNTANGLE THE STIMULUSDespite the local hardware store’s concerns about a competitor’s impact on sales, the author concludes that the store’s sales are actually likely to increase. To support this claim, the author points out a boom of construction projects in the area.
STEP 3: PREDICT THE ANSWERA boom in construction projects might seem like a boon for a hardware store. However, what if those construction projects require special materials that the local store cannot provide? Or what if the construction crews already own the equipment they need and have no need to go shopping for new stuff? Or maybe the construction companies have preexisting contracts with national hardware chains and don’t buy from local stores at all. In that case, the local store would gain no benefit from these new projects. For this argument to work, the author must assume that the construction projects will provide sales opportunities for the local store.
STEP 4: EVALUATE THE CHOICES(B) is correct. If the construction projects don’t need anything the local store is selling, then the local store will gain nothing. The author must assume the new projects will lead to sales.
(A) is not necessary. The local store and the incoming competition don’t have to have equal sales. If the construction projects lead to a large enough increase in overall sales, then the local store could increase sales even it takes in a smaller percentage of overall sales.
(C) is irrelevant. There’s no guarantee that higher quality would lead to higher sales. In addition, there are many scenarios under which the local store could increase sales even if its materials were of equal or lesser quality to those sold by the competitor.
(D) is not necessary. While an increase in personal home improvement projects might well benefit the hardware store, they wouldn’t be needed if the new mixed-use developments have the anticipated demand for the store’s products.
(E) is not necessary. While lower prices might be a great way to boost sales, there are many other reasons sales could increase—including those major construction projects that the author uses as evidence.
Answer: B
close
05 Mar 2024, 02:30
35%
(medium)
27%
(01:56)
wrong 
