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Fish currently costs about the same at seafood stores

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Manager
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Re: CR-Fish stores [#permalink]

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10 Jun 2011, 14:45
E for me..
Have a nice and productive weekend everyone.
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Re: CR-Fish stores [#permalink]

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11 Jun 2011, 01:43
E works best.

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Re: CR-Fish stores [#permalink]

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16 Jun 2011, 07:07
tough one for me to do within a minute n half...i fell for D..
thanks guys to point out it as E...good learning
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Re: CR-Fish stores [#permalink]

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16 Jun 2011, 19:04
E if the prices are set low then profit margin may not increase.Hence the OA.
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Re: Fish currently costs about the same at seafood stores [#permalink]

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16 May 2012, 11:21
Btween C and E as contenders, I picked E- the most sound answer.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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02 Jul 2012, 10:26
The answer for me is E because if the price is same in Eastville and its suburbs and in spite of the low taxes in the city the seafood stores do not lower their price then why would customer from suburbs come to to the city when they can buy it near their homes at the same price. So for the argument to hold true, we need to know if the price of the fish would be priced lower.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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03 Jul 2012, 03:04
Answer E is correct

For ensuring the argument, one should identify whether the purchasing price of fish will remain same or tumble due to the market mechanism like buyer compete one with another for private benefit if there is opportunity for decreasing the price.
For example
Previous: city \$ 50, suburban \$50 (equal margin 15)
Future: city \$40, suburban \$ 50 (equal margin 15)

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Re: Fish currently costs about the same at seafood stores [#permalink]

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03 Jul 2012, 06:40
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

My 2 cents,

For an evaluation problem like this, the answer choice should be able to either strengthen or weaken the argument.

Choice D,
if assuming true, the conclusion will be strengthened. -> Profit margin in the city will be increased.

Then,
revert the choice D -> Fish hasn't always cost about the same at blah-blah.
if assuming true, you don't know whether the cost in city is less or more than the ones in the suburbs.
because there are two possible cases for the fish
1) \$ in city > \$ in suburb
2) \$ in city < \$ in suburb

Choice E,
Either you revert the choice or you assume the choice to be true, the conclusion will be either strengthened or weakened.

Choice E wins.

Please correct my reasoning if wrong.
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Re: Fish currently costs about the same at seafood stores [#permalink]

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03 Jul 2012, 08:45
I will vote for E because

question is asking to "evaluating the argument" - when u evaluate an argument we generally weaken the conclusion and the answer choices are Premises

Conclusion: "in the future, profit margins will be higher at seafood stores within the city than at suburban seafood stores"

Premise 1: new tax breaks will substantially lower the cost of doing business within the city.
premise 2: Fish currently costs about the same throughout Eastville and its surrounding suburbs

(A) More fish wholesalers are located within the city than in the surrounding suburbs
--> Out of scope - not talking about number of wholesales

(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
--> Out of scope ardument doesnot talk about relocating doesnot impact out conclusion

(C) The wholesale price of fish is likely to fall in the future
--> already a premise cannot usee it again

(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs
--> already a premise cannot usee it again

(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores
--> if they set prices that are lower, then will weaken the conclusion of higher profit margins

hope that helps

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Re: Fish currently costs about the same at seafood stores [#permalink]

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14 Jun 2013, 05:58
Answer is E.

It's out of D or E for sure, BUT..

Question states, 'Therefore, in the future,'.. so we're looking ahead, not at past prices which is why D is incorrect. It is not relevant that historically prices are the same in the city and the suburbs.

Looking at the effect the tax break will have going forward i.e. in future, hence E.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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22 Jun 2013, 06:17
This one's an E. And this is why:

(A) More fish wholesalers are located within the city than in the surrounding suburbs
Does not affect the conclusion in any way.

(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city
Nope. Irrelevant.

(C) The wholesale price of fish is likely to fall in the future
This comes close, but is too isolated to one part of the conclusion.

(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs
Again worded in such a way that seems to tackle the argument and can seem closer than C, and therefore can be misleading. It's incorrect because it talks about the past not the future.

(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores
This is the one! Knowing this will ascertain whether profit margins will be higher or will remain the same.
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Re: Fish currently costs about the same at seafood stores [#permalink]

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23 Jun 2013, 18:20
Answer: E

The conclusion of the passage says that the profit margins in the city would be higher compared to that of the suburbs due to the tax breaks in the city.

Hence, the most important information that we would need to know to determine the profits would be how the prices are affected in the city (or the suburbs) after this change. If the prices are lowered in the city than the profit margins would reduce. If the prices in the suburbs have been reduced to match the margins in the city, then profit margin in the city would remain equal to that of the suburbs.

Giving 'E' as the option.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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24 Jun 2013, 11:46
Yes, the thinking as you go through (E) to determine whether it's a critical variable:

Step 1: Figure out the two states of the answer choice

(1) City prices will be LOWER than suburban prices
(2) City prices will NOT be lower than suburban prices (perhaps same price, OR higher)

If (1), this means lower profit margin. The profit margin gained through tax breaks in the city is offset. No change in profit margin potentially -- weakens argument
If (2), city prices are at least the same or higher. If the same, then profit margin will be higher (strengthens argument). If city prices higher, then profit margin even higher (strengthens argument).

Using the gmatpill cr framework approach for evaluate questions, we found a critical variable where in one state it weakens the argument, in the other it strengthens. This it's "useful to know" to help us evaluate the argument.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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26 Sep 2014, 02:37
Clear E.

Conclusion: profit margins will be higher in the city than in suburbs.

In this argument is being assumed that everything stays the same, except for the tax break in the city. Thus, we have to ascertain whether this is true or not.

(A) More fish wholesalers are located within the city than in the surrounding suburbs
It does not help to know whether something different from tax break can distinguish city and suburban seafood stores
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer
to the city
Any people... Typical trap
(C) The wholesale price of fish is likely to fall in the future
This would affect seafood stores in both city and suburbs
(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs
Typical trap: talking about an uncertain past that nothing has to do with the issue at hand
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores
CORRECT: now we have something that could change -prices- and thus the effect of the tax break could be neutralized

Hope it helps

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Re: Fish currently costs about the same at seafood stores [#permalink]

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16 Oct 2014, 01:06
snipertrader wrote:
You need the selling price for calculating the margin. D only talks about cost. Also, D is redundant as it is a rephrase of an info already given in the stem of the question.

E is the only one that talks about the selling price.

mohansrinivas wrote:
My answer would be D. Profit margin is nothing but ( Profit / revenue ) * 100.
If the fish selling stores maintain the same price, then certainly profit margin increases.
I am not convinced with the answer choice 'E'.
Could anyone explain me why the answer is not 'D'.

Agreed, but when we see choice 'E', maybe that Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores and also lower than the benefit Seafood stores within the city got from price cut and thus lower profit margins in the city than in suburbs , OR maybe they just lower the prices by amount greater than the benefits they get from tax cuts, then they have lower profit margins in the city than in suburbs. OR In case Seafood stores within the city will in the future set prices that are HIGHER than those at suburban seafood stores, then it is definite Yes. So answer choice e is not a definite answer. Where as D given that it reiterates Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs plus the lower taxes makes it higher margin business.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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30 Nov 2014, 21:01
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Got my gmat tomorrow , but lets give this a try .
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 - So wat ? does it tell if the profit of shop keeper within the city inc. ? NOPE
(B) Any people who currently own seafood stores in the suburbs surrounding Eastville will relocate their businesses nearer to the city - So wat ? does it tell if the profit of shop keeper within the city inc. ? NOPE
(C) The wholesale price of fish is likely to fall in the future - So wat ? does it tell if the profit of shop keeper within the city inc. ? NOPE
(D) Fish has always cost about the same at seafood stores throughout Eastville and its surrounding suburbs - So wat ? does it tell if the profit of shop keeper within the city inc. at the present time ? NOPE, this is a restated premise.
(E) Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores - PERFECT. if the shop keepers decide to dec the SP then the profit = CP-SP will remain equal.
** I am no expert but a piece of advice, CR is basically logical thinking. So dont think too much about wheather its a OFS or iSWAT. Just focus on the conclusion "Conclusion is the king":P

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Re: Fish currently costs about the same at seafood stores [#permalink]

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Re: Fish currently costs about the same at seafood stores [#permalink]

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26 Mar 2017, 06:16
E and D both are contenders - E is more precise saying about future event so IMO E is better option.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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01 Apr 2017, 06:27
I guess ans should be E. My reasoning is mentioned below -

E. Whether Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores.

Every evaluate question has two directions 'yes' or 'No'. Each ans should either strengthen or weaken the argument.

So if we take the ans of the above question 'yes' that means if 'Seafood stores within the city will in the future set prices that are lower than those at suburban seafood stores', so in that case the conclusion of the argument is weakened because in that case the Seafood stores in city might fail to maintain the higher profit margin than the seafood stores in suburb area.

if we take the ans of the above question 'No', the author's argument is strengthened, So 'E' should be the ans.

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Re: Fish currently costs about the same at seafood stores [#permalink]

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02 Jul 2017, 06:38
profit margins = total revenues - total costs of doing business
E is correct because E allows stores in the city are more attractive to customers, and hence have more profit margins in the end.

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Re: Fish currently costs about the same at seafood stores   [#permalink] 02 Jul 2017, 06:38

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