Columnist: On Web sites that conduct online auctions

Question

Columnist: On Web sites that conduct online auctions, sellers who set low asking prices tend to make more money than do those who set higher prices for similar items. A low asking price encourages more people to make initial bids. More bids make the item look more attractive to other potential buyers, thereby generating even more bids. Many of the early bidders then feel compelled to bid higher than they otherwise would have so that will not lose the item.

The columnist’s claims most strongly support the conclusion that

A. in online auctions, sellers who set excessively high asking prices usually receive no bids matching those prices
B. The more people who make initial bids on an item, the higher the final bid tends to be
C. Potential buyers tend to base how useful an item would be to them at least in part on the amount the seller sets as the asking price
D. Bidders who feel compelled to bid higher than they otherwise would usually end up paying more for an item than it is worth
E. The types of items for which most sellers set lower asking prices tend, on average, to ultimately generate higher bids than do other types of items

sherlocked221B · Answer

I was confused with 4 options (A, B, D, E) here and I had reasons for ruling out all the 4

A - In online auctions, sellers who set excessively high asking prices usually receive no bids matching those prices This is too extreme to conlcuded that there are no bids matching the price. B. The more people who make initial bids on an item, the higher the final bid tends to be: This seemed to be the right answer, but what if fewer people taking a bid, bid the item for higher prices? For example - 10 bids, where each bid was greater than 10 units. 5 bids, where bid greater than 1000 curency units. Final bid higher in the second case. D. Bidders who feel compelled to bid higher than they otherwise would usually end up paying more for an item than it is worth Not possible to comment on the worth of the item, so ruling out! E. The types of items for which most sellers set lower asking prices tend, on average, to ultimately generate higher bids than do other types of items It is comparing different types of items whereas the argument compares asking prices for similar items. b_sudharsan KarishmaB GMATNinja Could you explain this please? Thank you!

bronaugust · Answer

Hi,  jaswanth_ss !

To solve this question, let us deploy    IMS's four-step technique   .

STEP #1  ->   IDENTIFY THE QUESTION TYPE

Let us read the question stem to identify the question type. The stem states, 'The columnist’s claims most strongly support the conclusion that'. What we have is a  conclusion  question.

Now that the question type is identified, let us proceed to the next step.

STEP #2  ->   X-RAY THE PASSAGE

Let us now x-ray the passage and state the facts.

FACT #1   -> On Web sites that conduct online auctions, sellers who set low asking prices tend to make more money than do those who set higher prices for similar items.

FACT #2   ->  A low asking price encourages more people to make initial bids.

FACT #3   -> More bids make the item look more attractive to other potential buyers, thereby generating even more bids.

FACT #4   -> Many of the early bidders then feel compelled to bid higher than they otherwise would have so that will not lose the item.

Now that the argument is x-rayed, let us proceed to the third step.

STEP #3  ->   FRAME A SHADOW ANSWER

In a conclusion question, the correct answer must be fully (100 percent) validated by the facts stated in the passage. The correct answer either links the unlinked terms or summarizes the information shared by the author.

SHADOW ANSWER:   Any option that summarizes the information stated in the passage or links the unlinked terms.

STEP #4  ->   ELIMINATE INCORRECT OPTIONS

A. In online auctions, sellers who set excessively high asking prices usually receive no bids matching those prices -   NOT A MATCH   -  There is no info regarding sellers who set excessively high asking prices; therefore, no conclusion about such bidders can be drawn.  -   ELIMINATE

B. The more people who make initial bids on an item, the higher the final bid tends to be - MATCHES THE SHADOW ANSWER -  This answer option summarizes the stated facts.   More bids -> Attractive to other potential buyers -> Even more bids -> Early bidders bid higher  -   KEEP

C. Potential buyers tend to base how useful an item would be to them at least in part on the amount the seller sets as the asking price -   NOT A MATCH   -  There is no info regarding the usefulness of an item.  -   ELIMINATE

D. Bidders who feel compelled to bid higher than they otherwise would usually end up paying more for an item than it is worth -   NOT A MATCH   -  There is no info regarding the worth of an item.  -   ELIMINATE

E. The types of items for which most sellers set lower asking prices tend, on average, to ultimately generate higher bids than do other types of items. -   NOT A MATCH   -  There is no info regarding the types of items for which most sellers set lower asking prices.  -   ELIMINATE

Hence, B is the correct answer.

hk411 · Answer

I disagree with B as correct answer. I am not sure that it is a conclusion. It might be just a fact.

egmat · Answer

Hi hk411,

Good instinct to pause here, but the confusion is really about  what this question type is asking for , not about whether B is true.

Look again at the stem:  "The columnist's claims most strongly support the conclusion that..."  This is an  inference  question. It is  not  asking you to find the author's arguable main point. It is asking: given the facts stated, what can you reliably conclude? So the  right  answer here is  supposed  to be strongly backed by the facts. "It's well supported by what's said" is exactly the quality you want - not a reason to reject it.

Now, is B just a restatement of a fact?  Not quite. Notice that B is never stated in a single sentence anywhere. It's the result of  stitching the chain together :

- more initial bids - item looks more attractive -
- generates  even more  bids -
- early bidders feel compelled to bid  higher

Put end to end, that chain says:  more initial bidders tends to push the final bid higher  - which is precisely B. So B isn't one quoted fact; it's the conclusion the separate facts  build toward . That's why the stem uses the word "conclusion."

A quick way to feel it

Suppose someone tells you:  "When it rains, the field gets muddy, and a muddy field makes players slip."  Neither sentence directly says  "rain leads to players slipping"  - but that conclusion is fully supported when you connect the two facts. Rejecting it because "it's just the facts" would miss the point; connecting facts is the whole task.

Same move here: B is the conclusion the columnist's linked facts most strongly support. That's what makes it the answer.

Answer: B

Columnist: On Web sites that conduct online auctions

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Columnist: On Web sites that conduct online auctions

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