GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 23 Oct 2019, 11:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Demand levels for some categories of products are closely interdepende

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 58464
Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 16 Jul 2018, 04:20
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

80% (01:23) correct 20% (01:41) wrong based on 243 sessions

HideShow timer Statistics

Demand levels for some categories of products are closely interdependent. When one type of a product can serve as a complement for another product, the levels of demand for these goods are positively related. An increase in the demand for one product usually increases the demand for its complementary product. Similarly, a decrease in the demand for one good causes a decrease in the demand for its complementary product.

Which of the following statements provides an example of the relationship between product demands described above?


A. A decrease in the demand for CD players results in a decrease in the demand for CD`s.

B. An increase in the demand for butter results in an increase in the demand for margarine.

C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags.

D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones.

E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas.

_________________
Retired Moderator
User avatar
D
Joined: 30 Jan 2015
Posts: 794
Location: India
Concentration: Operations, Marketing
GPA: 3.5
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 16 Jul 2018, 04:30
+1 for A.

A. A decrease in the demand for CD players results in a decrease in the demand for CD`s. --> Correct, CD players(main product) is directly proportional to CD(complement product), matches the reasoning

B. An increase in the demand for butter results in an increase in the demand for margarine. --> Incorrect, Similar entities

C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags. --> Incorrect, the opposite

D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones. --> Incorrect, entities not related

E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas. --> Incorrect, inverse proportion

Hence, A.
_________________
The few, the fearless !

Thanks :-)
RC Moderator
User avatar
V
Joined: 24 Aug 2016
Posts: 789
GMAT 1: 540 Q49 V16
GMAT 2: 680 Q49 V33
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post Updated on: 16 Jul 2018, 05:46
Bunuel wrote:
Demand levels for some categories of products are closely interdependent. When one type of a product can serve as a complement for another product, the levels of demand for these goods are positively related. An increase in the demand for one product usually increases the demand for its complementary product. Similarly, a decrease in the demand for one good causes a decrease in the demand for its complementary product.

Which of the following statements provides an example of the relationship between product demands described above?


A. A decrease in the demand for CD players results in a decrease in the demand for CD`s.

B. An increase in the demand for butter results in an increase in the demand for margarine.

C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags.

D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones.

E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas.


Option A. A decrease in the demand for CD players results in a decrease in the demand for CD`s. -------Correct +ve correlation. CD's cannot be enjoyed without CD-player

Option B. An increase in the demand for butter results in an increase in the demand for margarine. --------In this case, logically butter and margarine are interchangeable in most cases. The relationship is supposed to be -ve ly correlated.

Option C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags. -------Not logical .The relationship is supposed to be +ve ly correlated.

Option D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones. -----These two events are not related. They are independent.

Option E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas. -------Not logical .The relationship is supposed to be +ve ly correlated.
_________________
Please let me know if I am going in wrong direction.
Thanks in appreciation.

Originally posted by u1983 on 16 Jul 2018, 05:28.
Last edited by u1983 on 16 Jul 2018, 05:46, edited 1 time in total.
Intern
Intern
avatar
B
Joined: 28 Jul 2017
Posts: 42
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 16 Jul 2018, 05:34
Products need to serve as complement to each other. Butter and margarine are interchangeable and complement, rest of the categories are not.

Sent from my ONEPLUS A5000 using GMAT Club Forum mobile app
Math Expert
avatar
V
Joined: 02 Aug 2009
Posts: 8023
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 16 Jul 2018, 05:44
Demand levels for some categories of products are closely interdependent. When one type of a product can serve as a complement for another product, the levels of demand for these goods are positively related. An increase in the demand for one product usually increases the demand for its complementary product. Similarly, a decrease in the demand for one good causes a decrease in the demand for its complementary product.

Which of the following statements provides an example of the relationship between product demands described above?

RELATIONSHIP:- demands interdependent and increase in demand of one leads to increase in demand of other and similarly they decrease together

A. A decrease in the demand for CD players results in a decrease in the demand for CD`s.
CDs are played in CD player, so interdependent and correctly represents the relationship...CORRECT

B. An increase in the demand for butter results in an increase in the demand for margarine.
they are not interdependent. rather both are substitute for each other

C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags.
the relationship is not positively related .. Increase and decrease

D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones.
Two totally unrelated objects

E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas.
the relationship is not positively related .. Increase and decrease

A
_________________
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2401
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 16 Jul 2018, 11:14
Demand levels for some categories of products are closely interdependent. When one type of a product can serve as a complement for another product, the levels of demand for these goods are positively related. An increase in the demand for one product usually increases the demand for its complementary product. Similarly, a decrease in the demand for one good causes a decrease in the demand for its complementary product.

Which of the following statements provides an example of the relationship between product demands described above?


A. A decrease in the demand for CD players results in a decrease in the demand for CD`s. - Correct - CDs and CD players are positively related

B. An increase in the demand for butter results in an increase in the demand for margarine. - Incorrect - in general , a person consumes only one of these

C. A decrease in the demand for notebooks results in an increase in the demand for notebook bags. - Incorrect - not positive relation since one has decreased whereas the other has increased

D. An increase in the demand for toothpaste results in an increase in the demand for cellular phones. - Incorrect

E. A decrease in the demand for cable television results in an increase in the demand for satellite antennas. - Incorrect - same as C

Answer A
_________________
When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
Director
Director
User avatar
D
Joined: 24 Oct 2016
Posts: 535
GMAT 1: 670 Q46 V36
GMAT 2: 690 Q47 V38
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 12 Jan 2019, 05:55
nightblade354 Bunuel This is duplicate of https://gmatclub.com/forum/demand-level ... 70694.html. This could be archived or locked. Thanks!
_________________
Most Comprehensive Article on How to Score a 700+ on the GMAT (NEW)
Verb Tenses Simplified


If you found my post useful, KUDOS are much appreciated. Giving Kudos is a great way to thank and motivate contributors, without costing you anything.
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 58464
Re: Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 12 Jan 2019, 08:23
Manager
Manager
avatar
S
Joined: 04 Dec 2017
Posts: 93
Location: India
Concentration: Other, Entrepreneurship
Schools: ISB '20 (D)
GMAT 1: 570 Q36 V33
GMAT 2: 620 Q44 V32
GMAT 3: 720 Q49 V39
GPA: 3
WE: Engineering (Other)
Demand levels for some categories of products are closely interdepende  [#permalink]

Show Tags

New post 23 Feb 2019, 03:03
Meaning: Author says that demand for some categories of products is interdependent, and when the products are complimentary to each other their demands has a positive relation, which means that increase/decrease in demand of one leads to increase/decrease in demand of other.

Logic: This is an application type question. Keywords/Criteria are: demand is interdependent, products are complementary to each other, demands have a positive relation. Correct example or application must satisfy this criteria.

Answer: A
GMAT Club Bot
Demand levels for some categories of products are closely interdepende   [#permalink] 23 Feb 2019, 03:03
Display posts from previous: Sort by

Demand levels for some categories of products are closely interdepende

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne