Auto Manufacturer: For the past three years, the Micro has been our be

Official Explanation:

C

Step 1: Identify the Question Type

This stem offers standard language for a Bolded Statement question—it asks you to determine the roles played in the arguments by each of the boldface statements.

Step 2: Untangle the Stimulus

The stimulus is organized as a dialogue. This is a rare stimulus format, but it does occasionally turn up on the GMAT. Here, the manufacturer has devised a solution to revive flagging sales of the Micro: to make certain features standard that used to cost buyers extra. The auto dealer, on the other hand, posits that adding new standard features will increase the price of the Micro, thereby hurting sales.

Step 3: Predict the Answer

Predict the answer by identifying the function of each of the bolded statements within the context of the argument counterargument structure. The first bolded statement is a prediction that serves as the auto manufacturer’s conclusion: adding more standard features to the Micro will stimulate sales. The manufacturer’s conclusion relies on one of two assumptions: either that the added features will not result in an increase to the Micro’s base price, or that car buyers interested in the Micro are willing and able to pay more for a version of the car with added features. However, as the auto dealer states, people who buy the Micro do so primarily because of its low price. Because the addition of more standard features will result in an increase in price, the manufacturer’s proposal will actually lower sales. The second bolded statement, therefore, weakens the manufacturer’s prediction by challenging his assumption.

Step 4: Evaluate the Choices

Only (C) matches this analysis of the arguments. (A) begins correctly, but the second bolded statement does not challenge any of the manufacturer’s evidence (that the Micro was the best-selling model for three years, that sales of the Micro have been down for two quarters, and that the company is planning to add new standard features to the Micro). (B) can also be eliminated for this reason. (D) is incorrect because the first bolded statement is not the manufacturer’s evidence but his conclusion. (E) might also have appealed to you, since the auto dealer does offer a different point of view on how these new standard features will affect sales of the Micro. However, the dealer’s point of view is actually the opposite of the manufacturer’s conclusion, so saying that the second statement “supports the conclusion” of the first is incorrect. Answer choice (C) is correct.