Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 May 2017, 19:25

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Fish currently costs about the same at seafood stores

Author Message
Manager
Joined: 03 Jul 2006
Posts: 175
Followers: 1

Kudos [?]: 26 [0], given: 0

### Show Tags

23 Sep 2006, 08:36
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.

For the purposes of evaluating the argument, it would be most useful to know
whether.
(A)more fish wholesalers are located within the city than in the surrounding suburbs.
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
(C) The wholesale price of fish is likely to fall in the future
(D)Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs.
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.
Manager
Joined: 13 Sep 2006
Posts: 212
Followers: 2

Kudos [?]: 2 [0], given: 0

### Show Tags

23 Sep 2006, 08:53
E?...for some reason I can't grasp this argument..
VP
Joined: 28 Mar 2006
Posts: 1372
Followers: 2

Kudos [?]: 33 [0], given: 0

### Show Tags

23 Sep 2006, 09:02
I would go for B...
SVP
Joined: 01 May 2006
Posts: 1796
Followers: 9

Kudos [?]: 154 [0], given: 0

### Show Tags

23 Sep 2006, 09:56
(E) for me too
Senior Manager
Joined: 14 Jul 2006
Posts: 326
Followers: 1

Kudos [?]: 10 [0], given: 0

### Show Tags

23 Sep 2006, 10:16
Going for (E) too.
_________________

A well-balanced person is one who has a drink in each of his hands.

Director
Joined: 10 Oct 2005
Posts: 526
Location: US
Followers: 1

Kudos [?]: 63 [0], given: 0

### Show Tags

23 Sep 2006, 11:36
straight one E...
Manager
Joined: 03 Jul 2006
Posts: 175
Followers: 1

Kudos [?]: 26 [0], given: 0

### Show Tags

23 Sep 2006, 13:47
OA: E

can someone explain the reasoning ?
Director
Joined: 06 May 2006
Posts: 791
Followers: 3

Kudos [?]: 34 [0], given: 2

### Show Tags

23 Sep 2006, 14:15
rkatl wrote:
OA: E

can someone explain the reasoning ?

The question says profit margins will be higher within the city.

However, this may not be true if the city stores decide to reduce prices sufficiently. The profit margins are a function of the price.

Hence E.
_________________

Uh uh. I know what you're thinking. "Is the answer A, B, C, D or E?" Well to tell you the truth in all this excitement I kinda lost track myself. But you've gotta ask yourself one question: "Do I feel lucky?" Well, do ya, punk?

Senior Manager
Joined: 11 Jul 2006
Posts: 381
Location: TX
Followers: 1

Kudos [?]: 14 [0], given: 0

### Show Tags

23 Sep 2006, 14:40
rkatl wrote:
Fish currently costs about the same at seafood stores throughout Eastville and its surrounding suburbs. Seafood stores buy fish from the same wholesalers and at the same prices, and other business expenses have also been about the same. But new tax breaks will substantially lower the cost of doing business within the city. Therefore, in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores.

For the purposes of evaluating the argument, it would be most useful to know
whether.
(A)more fish wholesalers are located within the city than in the surrounding suburbs.
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
(C) The wholesale price of fish is likely to fall in the future
(D)Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs.
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.

Its E

The Tax breaks will benifit seafood stores within the city which will increase the profit margins.
E states that the city seafood stores might pass this benifit to its customers by reducing the price which will result in their profit margin not increasing.
Director
Joined: 17 Jul 2006
Posts: 707
Followers: 1

Kudos [?]: 13 [0], given: 0

### Show Tags

25 Sep 2006, 11:15
Yes E
Manager
Joined: 15 Aug 2006
Posts: 96
Followers: 1

Kudos [?]: 6 [0], given: 0

### Show Tags

25 Sep 2006, 12:00
Same here - E.

Profit margin will go down, if retail stores cut the sale price. So it is important to know whether the retailers within the city are going to cut the sale price or not , in order to determine whether the profit margin will increase or not.
_________________

http://gmatstuff.blogspot.com

Senior Manager
Joined: 02 Sep 2006
Posts: 254
Followers: 1

Kudos [?]: 65 [0], given: 0

### Show Tags

25 Sep 2006, 12:22
Why not A?

I mean since there are new tax breaks and will substantially lower the cost of doing business within the city, wouldn't it encourage more fishsailers to move within the city? Or is the question asking something contradictory?
Manager
Joined: 15 Aug 2006
Posts: 54
Followers: 1

Kudos [?]: 0 [0], given: 0

### Show Tags

25 Sep 2006, 13:35
If 'E'..then, because of the price reduction..the profit margin will go down in city..but the question asked is to evaluate the argument...

E will actually weaken the argument right...

Does the question "Evaluate the argument" means to find a solution to weaken the argument?

getting confused...can anyone correct my mistake..
Manager
Joined: 15 Aug 2006
Posts: 96
Followers: 1

Kudos [?]: 6 [0], given: 0

### Show Tags

25 Sep 2006, 18:04
Evaluate basically means if the information provided will help you in making the decision one way or the other. Doesn't necessarily to weaken, it can be to strengthen.
_________________

http://gmatstuff.blogspot.com

Intern
Joined: 26 Dec 2005
Posts: 42
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

27 Sep 2006, 02:19
Important diff between B and E ( the only plausible choices) is that taxes have been lowered within the city while B talks about businesses nearer to the city not in it (a nd therefore do not have taxes apply to it)
VP
Joined: 25 Jun 2006
Posts: 1167
Followers: 3

Kudos [?]: 157 [0], given: 0

### Show Tags

27 Sep 2006, 18:29
E for sure.
27 Sep 2006, 18:29
Similar topics Replies Last post
Similar
Topics:
1 Russia's aggressive fishing in the prime fishing grounds of 9 25 Jun 2008, 16:46
Fresh potatoes generally cost about \$2 for a 10-pound bag, 6 10 Jan 2008, 20:18
If a mechanical aerator is installed in a fish pool, the 5 08 Nov 2007, 08:29
Russia's aggressive fishing in the prime fishing grounds of 8 23 Aug 2007, 18:58
Environmentalist: The commissioner of the Fish and Game 3 15 Jun 2007, 21:13
Display posts from previous: Sort by