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# Another one of the CRs that bowled me, The lower the cost of

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Senior Manager
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Another one of the CRs that bowled me, The lower the cost of [#permalink]

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25 Jul 2009, 09:59
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Another one of the CRs that bowled me,

The lower the cost of distributing fliers, the more retail establishments will distribute fliers, and retail establishments that distribute fliers generally charge less for items listed in the fliers than retail establishments that do not distribute fliers charge for equivalent items. Thus, if the government subsidized the distribution of fliers by retail establishments, the cost to consumers for retail items will drop.

The argument above presupposes which of the following?

A. Some of the most moderately priced retail establishments do not currently have the financial resources to distribute fliers.
B. Consumers will buy more retail items if the overall cost of these items decreases.
C. If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.
D. If more retail establishments distribute fliers listing items at lower prices, some retail establishments who do not distribute fliers will lower their prices on these items.
E. If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.

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Joined: 05 Jun 2009
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25 Jul 2009, 11:43
IMO D
not sure though

-----

Reasoning:

A. Some of the most moderately priced retail establishments do not currently have the financial resources to distribute fliers.
- Out of scope
B. Consumers will buy more retail items if the overall cost of these items decreases.
-Out of scope (talking about the cost to consumer, and not about the amount of purchase.
C. If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.
==> This is already stated and is not an assumption
Government subsidise ==> result in lower cost of distribution
And premises is already there which states :
Lower the cost ==> more retail establishment would distribute

D. If more retail establishments distribute fliers listing items at lower prices, some retail establishments who do not distribute fliers will lower their prices on these items.
-->Seems fine
E. If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.
==> I don't like the word 'most' in these cases as they are extreme.

that's my POE.

--(2:09)--

Now why D is correct IMO:
conclusion is "if ..., the cost to consumers for retail items will drop"
So D answers that ==> With more players in the distribution with lower prices, other retail establishments who do not distribute will lower their prices, not necessary lower than others who distribute fliers.
==>End result, cost to the most of the consumers, including those who use the services of the establishments who do not distribute, will decrease
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Name: Ronak Amin
Schools: IIM Lucknow (IPMX) - Class of 2014

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25 Jul 2009, 12:24
IMO E.

D >> Tempting. If retail establishments which do not distribute fliers lower their prices only then the cost to consumers will come down. Note that the conclusion is made in a generic way..saying "cost to consumers for retail items will drop". Which means all retail establishments (fliers+ non-fliers) have to reduce prices..NOT only "some".

E >> If "most" retail establishments distribute fliers and government subsidizes all of them then the cost to consumers will drop for sure.
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25 Jul 2009, 12:58
Economist wrote:
IMO E.

D >> Tempting. If retail establishments which do not distribute fliers lower their prices only then the cost to consumers will come down. Note that the conclusion is made in a generic way..saying "cost to consumers for retail items will drop". Which means all retail establishments (fliers+ non-fliers) have to reduce prices..NOT only "some".

E >> If "most" retail establishments distribute fliers and government subsidizes all of them then the cost to consumers will drop for sure.

As per E:
first, "Most" doesn't imply all,
==> so, there are still few retail establishments which still do not

Before subsidy we have 50 establishments who distribute, and 50 establishments who do not distribute.

After subsidy,

lets say 90 who distribute, and 10 who do not.

Now, what about the customers of these 10 establishments.
==> Are you assuming that they are going to decrease their prices. Why will these establishments will decrease their price, no reason mentioned as such in the premises.

And if they are not going to decrease their prices, there is no decrease in cost of their customers. (Not completely supporting the conclusion)

If the case in the conclusion were like 'cost of the most of the customers', E would be right.
IMO: Conclusion is for all the customers and E doesn't caters to all customers.

D implies that as 50 becomes 70,80, or 90 who distribute, the remaining 30,20, or 10 who do not distribute will decrease the cost of the items.
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Joined: 12 Jul 2009
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25 Jul 2009, 13:41
IMO D.

C and E imply that there is only an increase in no of retailers selling cheap rather than the price as a whole becoming cheaper. However D implies clearly that the prices everywhere will decrease.
Director
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Name: Ronak Amin
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25 Jul 2009, 21:20
Thus, if the government subsidized the distribution of fliers by retail establishments, the cost to consumers for retail items will drop.

For assumption, we have to link subsidy<->distribution<->prices.
E links everything and holds the argument.

D. If more retail establishments distribute fliers listing items at lower prices, some retail establishments who do not distribute fliers will lower their prices on these items.

For D, retail establishments may or may not reduce the price. True, if they reduce price definitely the cost will go down. But we don't whether these establishments were already having the subsidy or they have lowered prices due to the subsidy.
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25 Jul 2009, 23:47
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Senior Manager
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26 Jul 2009, 00:11
Hi friends....When I attempted the question, I thought that the only credible answers are C and E..Both of them say ALMOST the same thing...But the presence of MOST in E corrupts the intention of an assumption....So C wins here....C is the OA...

D is wrong because the situation given in D is already there in the passage and even in the presence of the situation, there is no evidence of the lowering of the price by the nonflier retailers....This question teaches us a lot about why we need to pick "not extreme" choices about the assumption questions ...For except that, choice C and E are same.....
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26 Jul 2009, 00:53
trainspotting wrote:
Hi friends....When I attempted the question, I thought that the only credible answers are C and E..Both of them say ALMOST the same thing...But the presence of MOST in E corrupts the intention of an assumption....So C wins here....C is the OA...

D is wrong because the situation given in D is already there in the passage and even in the presence of the situation, there is no evidence of the lowering of the price by the nonflier retailers....This question teaches us a lot about why we need to pick "not extreme" choices about the assumption questions ...For except that, choice C and E are same.....

What is the source of question?
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26 Jul 2009, 01:03
sudeep wrote:
trainspotting wrote:
Hi friends....When I attempted the question, I thought that the only credible answers are C and E..Both of them say ALMOST the same thing...But the presence of MOST in E corrupts the intention of an assumption....So C wins here....C is the OA...

D is wrong because the situation given in D is already there in the passage and even in the presence of the situation, there is no evidence of the lowering of the price by the nonflier retailers....This question teaches us a lot about why we need to pick "not extreme" choices about the assumption questions ...For except that, choice C and E are same.....

What is the source of question?

I cnt tll the exact source on this forum...But believe me the source is genuine...This is not one of the questons in which we need to be suspicious of the source ...If you are really bent on knowing the source, shoot me a mail, I'll reply....

Anyways...Don't you agree with the reasoning why D is wrong???
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26 Jul 2009, 01:13
trainspotting wrote:
sudeep wrote:
trainspotting wrote:
Hi friends....When I attempted the question, I thought that the only credible answers are C and E..Both of them say ALMOST the same thing...But the presence of MOST in E corrupts the intention of an assumption....So C wins here....C is the OA...

D is wrong because the situation given in D is already there in the passage and even in the presence of the situation, there is no evidence of the lowering of the price by the nonflier retailers....This question teaches us a lot about why we need to pick "not extreme" choices about the assumption questions ...For except that, choice C and E are same.....

What is the source of question?

I cnt tll the exact source on this forum...But believe me the source is genuine...This is not one of the questons in which we need to be suspicious of the source ...If you are really bent on knowing the source, shoot me a mail, I'll reply....

Anyways...Don't you agree with the reasoning why D is wrong???

IMO C is already stated and not assumed ==> see my first post for the reasoning.
C is not justifying the conclusion that the cost to consumers will drop.
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26 Jul 2009, 01:34
sudeep wrote:
IMO C is already stated and not assumed ==> see my first post for the reasoning.
C is not justifying the conclusion that the cost to consumers will drop.

Dude, C is not stated in the argument...The argument says in its PREMISE that if the cost of distribution is lower, then more retail establishments will distribute fliers..The argument further says in its CONCLUSION that government subsidies will lower the costs....

Generally in argument questions, we need to find the gaps between PREMISE and CONCLUSION and connect them to get the assumption...The kind of reasoning you have given in you first post to reject C is EXACTLY what needs to be followed to get to the right ans in assumption questions....

Try to put C in a negation test...You'll realize that the negated C will weaken the argument....

I think we should not invest any more time in this question ad move on to the others....
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26 Jul 2009, 01:38
trainspotting wrote:
sudeep wrote:
IMO C is already stated and not assumed ==> see my first post for the reasoning.
C is not justifying the conclusion that the cost to consumers will drop.

Dude, C is not stated in the argument...The argument says in its PREMISE that if the cost of distribution is lower, then more retail establishments will distribute fliers..The argument further says in its CONCLUSION that government subsidies will lower the costs....

Generally in argument questions, we need to find the gaps between PREMISE and CONCLUSION and connect them to get the assumption...The kind of reasoning you have given in you first post to reject C is EXACTLY what needs to be followed to get to the right ans in assumption questions....

Try to put C in a negation test...You'll realize that the negated C will weaken the argument....

I think we should not invest any more time in this question ad move on to the others....

Thanks! I think I got one point.
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26 Jul 2009, 02:35
Very good question. +1 for the question.

However, I would not generalize that extreme choices are always wrong for assumption question. It all depends on the conclusion. If conclusion is extreme then assumption can be extreme. In this case the conclusion is generic and not 'extreme'. It doesn't say ALL customers...so C is a better choice.
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27 Jul 2009, 05:47
You dont need to assume C for conclusion to follow.
Stem says that "...retail establishments that distribute fliers generally charge less for items listed in the fliers"

trainspotting wrote:
Another one of the CRs that bowled me,

The lower the cost of distributing fliers, the more retail establishments will distribute fliers, and retail establishments that distribute fliers generally charge less for items listed in the fliers than retail establishments that do not distribute fliers charge for equivalent items. Thus, if the government subsidized the distribution of fliers by retail establishments, the cost to consumers for retail items will drop.

The argument above presupposes which of the following?

A. Some of the most moderately priced retail establishments do not currently have the financial resources to distribute fliers.
B. Consumers will buy more retail items if the overall cost of these items decreases.
C. If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.
D. If more retail establishments distribute fliers listing items at lower prices, some retail establishments who do not distribute fliers will lower their prices on these items.
E. If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.

Manager
Status: Stanford GSB
Joined: 02 Jun 2008
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27 Jul 2009, 10:13
C completes the circle of reasoning.
Senior Manager
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27 Jul 2009, 21:30
seofah wrote:
You dont need to assume C for conclusion to follow.
Stem says that "...retail establishments that distribute fliers generally charge less for items listed in the fliers"

trainspotting wrote:
Another one of the CRs that bowled me,

The lower the cost of distributing fliers, the more retail establishments will distribute fliers, and retail establishments that distribute fliers generally charge less for items listed in the fliers than retail establishments that do not distribute fliers charge for equivalent items. Thus, if the government subsidized the distribution of fliers by retail establishments, the cost to consumers for retail items will drop.

The argument above presupposes which of the following?

A. Some of the most moderately priced retail establishments do not currently have the financial resources to distribute fliers.
B. Consumers will buy more retail items if the overall cost of these items decreases.
C. If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.
D. If more retail establishments distribute fliers listing items at lower prices, some retail establishments who do not distribute fliers will lower their prices on these items.
E. If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.

Unsubscribing from the thread due to too many controversies....
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04 Aug 2009, 11:35
I chose C, becuase the second sentence plainly states that the subsidy will lower prices. The missing link is the fact that the subsidy will cause more retailers to produce fliers. E is similar to C, however, it says "most retailers". Who is to say that you need most of them to produce flyers in order to lower prices. Perhaps just some of them will be enough.

However, after reading Sudeep, I see his point. The first sentence clearly states that the lower cost will indeed make more retailers distribute fliers.
Re: Fliers   [#permalink] 04 Aug 2009, 11:35
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# Another one of the CRs that bowled me, The lower the cost of

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