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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
amit2k9
can you help me understand the last line of the argument...
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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
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fanatico wrote:
amit2k9
can you help me understand the last line of the argument...


1.Therefore, given that a price that will prove to be right is virtually impossible for the seller to gauge in advance,
2.the seller should make sure that any error in the initial asking price is in the direction of setting the price too high.

Exclusivity means high price.

1. Means,exactly what price is high enough is difficult to be judged.

As,exact price is difficult to be judged,there will be some error in knowing the price.

2. Means, Even if there is a judgmental error,the seller should stick to some high price value,since high price maintains 'Exclusivity'.

The line mentioned in Red, is the unstated judgement,brought out in E. And hence E is more of an assumption answer choice.

Good question indeed,especially tough if one cannot grasp the argument under timed conditions.
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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
I interpreted it in a similar way, but then i was confused with "the seller should make sure" clause...because it strikes out the difference between two approaches, treating them as two steps of an approach.

1. Look out for errors
2. If no errors then the price is set correctly
else set a higher price.

I feel the last sentence is misleading....
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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
I found the answer choices extremely confusing. I did understand that the argument states that it is difficult for the seller the gauge the price of a product in advance...and I did understand that the argument talks about exclusivity and that reducing the price of a product during sale is not the best strategy. But I didnt understand the very last sentence and any of the answer choices. Please help!!!!!!!1
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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
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The argument is basically saying that for exclusive products, we can actually scare off consumers by setting the price too low. Since we don't know what the correct price is, we should err on the side of a high price.

A is simply saying that the author's recommendation (setting the price high) lacks a feature (scaring off consumers) that the alternative strategy (setting the price low) features. This is tricky, since of course setting the price high might also scare off consumers. But the author only talks about people being put off by low prices--not high ones--so this answer choice works.
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Re: Certain items—those with that hard-to-define quality called exclusivit [#permalink]
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