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# For many years,alcohol producers followed a self imposed

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For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 07:00
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69% (02:36) correct 31% (01:38) wrong based on 291 sessions

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For many years,alcohol producers followed a self imposed ban on advertising on television.Eventually,some producers broke the ban and began advertising their products on television.The producers who advertised on television generally charged less for their products ,and so if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise.

Which of the following must be true if the statements above are true?

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.
(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.
(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.
(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.
(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

Need help.
OA to follow after some discussions.
[Reveal] Spoiler: OA

Last edited by maggie27 on 04 Jul 2014, 07:00, edited 1 time in total.
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 07:29
maggie27 wrote:
For many years,alcohol producers followed a self imposed ban on advertising on television.Eventually,some producers broke the ban and began advertising their products on television.The producers who advertised on television generally charged less for their products ,and so if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise.

Which of the following must be true if the statements above are true?

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.
(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.
(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.
(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.
(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

Need help.
OA to follow after some discussions.

B for me. If other producers also start advertising on TV, producers who are currently advertising will lose the advantage of TV advertisements. All are at par now and additionally bearing the cost of advertisements which they did not incur earlier. so all producers will raise their price to absorb the cost of advertisements and maintain their profitability atleast at earlier levels.
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 07:33
IMO C As it is indicated in the premise that the alcohol producers who advertise on television were selling there product for less , it means that when the Self imposed ban was broken( By producers who were selling for less) other producers who did not advertise on TV must be costlier

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Re: For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 07:35
2
KUDOS
An inference should be a restatement of the premise. Lets check the answer choices to do the POE

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV- This is out of scope as it gives us new information and this doesn't say about the reduce in the cost for the customer, rather it says only many people will drink alcohol.

(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV- The last part of the argument says that, the overall cost will reduce for the customers- Hence this is not what we inferred from the passage and it is an assumption that they may increase the price- Not necessarily.

(C) When the self-imposed ban was first broken,those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban- This looks nothing but a reword of the argument- It says that the alcohol producers who did not advertise charged more than the alcohol producers who advertise.

(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV- Not likely, this might be true- BUT not MUST BE TRUE- We may even have some alcohol producers who tend not to advertise, even if there is no ban.

(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices- Same as D. Also this is an assumption that if most of the alcohol produces decide to advertise then all of them will lower the price- Not necessarily.

So I go with C.
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 07:36
It seems to me that C) is the best choice.

I believe B) is incorrect because we donot have any clue to understand from the FactSet, that the trend mentioned in B) will take place.
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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03 Jul 2014, 12:38
IMO E.

"if all the producers began advertising in this fashion,overall costs to consumers would be lower than if they did not advertise."

(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

If this trend is followed further, overall cost will decline, and E is the only statement which follows such tone.
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For many years,alcohol producers followed a self imposed [#permalink]

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04 Jul 2014, 07:07
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered?
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For many years,alcohol producers followed a self imposed [#permalink]

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04 Jul 2014, 07:34
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maggie27 wrote:
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered?

Hi,

There should be no new info in the inference questions.

An inference is basically a logical inference from combination of one or more premises. As i posted earlier, it is normally a restatement of the premise.

In short, the must be true/ inference questions asks to select the answer which is proven by the information in the argument. When you compare C and the information in the stimulus, you can come to a conclusion that C is just a paraphrase of the argument.

For your doubt: What happened when the ban was first broken,how would we know?

the stimulus states that, some producers eventually broke the ban- It means some producers are the first to break the ban- isn't these two related?

I feel they are.

Hope this helps.

1. E-GMAT- Inference Vs Assumptions.

2. Magoosh- Find the Conclusion or Inference

3. Veritas Prep- Effectively tackling Must be true questions.
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For many years,alcohol producers followed a self imposed [#permalink]

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05 Jul 2014, 13:45
Thanks Gnpth. I understand where I made the mistake.
Kudos to u
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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05 Sep 2015, 05:48
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Re: For many years,alcohol producers followed a self imposed [#permalink]

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09 Nov 2015, 14:53
maggie27 wrote:
OA is C.

I have a doubt regarding the statement that we make about these questions that "No new info should be entertained". And option C felt like absolute new info and we even may consider it out of scope that is not something which is mentioned in the argument. What happened when the ban was first broken,how would we know?
How to understand that under what scenarios new info can be considered?

I agree with maggie27 The question stimuli says that there was a ban but not a collusion. How do we know that all producers charged the same price? Moreover, the argument says that those who advertised charged less...Less than what? Than before or less than those who didn't advertise? So i think that C is not a correct answer
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Re: For many years,alcohol producers followed a self imposed   [#permalink] 09 Nov 2015, 14:53
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