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

It is currently 23 Jan 2019, 22:36

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
Events & Promotions in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
  • Key Strategies to Master GMAT SC

     January 26, 2019

     January 26, 2019

     07:00 AM PST

     09:00 AM PST

    Attend this webinar to learn how to leverage Meaning and Logic to solve the most challenging Sentence Correction Questions.
  • Free GMAT Number Properties Webinar

     January 27, 2019

     January 27, 2019

     07:00 AM PST

     09:00 AM PST

    Attend this webinar to learn a structured approach to solve 700+ Number Properties question in less than 2 minutes.

For many years, alcohol producers followed a self imposed

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

Hide Tags

 
Manager
Manager
avatar
Joined: 25 Apr 2014
Posts: 112
For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post Updated on: 04 Jul 2014, 06:00
8
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

67% (01:46) correct 33% (01:44) wrong based on 550 sessions

HideShow timer Statistics

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.

Source : PowerScore

Originally posted by maggie27 on 03 Jul 2014, 06:00.
Last edited by maggie27 on 04 Jul 2014, 06:00, edited 1 time in total.
Most Helpful Community Reply
Current Student
User avatar
P
Status: It always seems impossible until it's done!!
Joined: 29 Aug 2012
Posts: 1118
Location: India
WE: General Management (Aerospace and Defense)
GMAT ToolKit User Premium Member Reviews Badge
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 03 Jul 2014, 06:35
2
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.
_________________

Become a GMAT Club Premium member to avail lot of discounts

General Discussion
Manager
Manager
avatar
Joined: 21 Sep 2012
Posts: 214
Location: United States
Concentration: Finance, Economics
Schools: CBS '17
GPA: 4
WE: General Management (Consumer Products)
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 03 Jul 2014, 06:29
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.
Intern
Intern
avatar
Joined: 19 Aug 2013
Posts: 3
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 03 Jul 2014, 06:33
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

OA Please
Manager
Manager
avatar
Joined: 22 Sep 2012
Posts: 129
Concentration: Strategy, Technology
WE: Information Technology (Computer Software)
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 03 Jul 2014, 06:36
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.
Director
Director
User avatar
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 772
Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Premium Member Reviews Badge
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 03 Jul 2014, 11:38
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.
_________________

Piyush K
-----------------------
Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time. ― Thomas A. Edison
Don't forget to press--> Kudos :)
My Articles: 1. WOULD: when to use? | 2. All GMATPrep RCs (New)
Tip: Before exam a week earlier don't forget to exhaust all gmatprep problems specially for "sentence correction".

Manager
Manager
avatar
Joined: 25 Apr 2014
Posts: 112
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 04 Jul 2014, 06:07
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? :cry:
Current Student
User avatar
P
Status: It always seems impossible until it's done!!
Joined: 29 Aug 2012
Posts: 1118
Location: India
WE: General Management (Aerospace and Defense)
GMAT ToolKit User Premium Member Reviews Badge
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 04 Jul 2014, 06:34
1
2
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? :cry:



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.

For more understanding, please read the below articles.

1. E-GMAT- Inference Vs Assumptions.

2. Magoosh- Find the Conclusion or Inference

3. Veritas Prep- Effectively tackling Must be true questions.
_________________

Become a GMAT Club Premium member to avail lot of discounts

Senior Manager
Senior Manager
avatar
B
Joined: 02 Dec 2014
Posts: 370
Location: Russian Federation
Concentration: General Management, Economics
GMAT 1: 640 Q44 V33
WE: Sales (Telecommunications)
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 09 Nov 2015, 13:53
1
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? :cry:

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
_________________

"Are you gangsters?" - "No we are Russians!"

SVP
SVP
User avatar
V
Status: Preparing GMAT
Joined: 02 Nov 2016
Posts: 2043
Location: Pakistan
GPA: 3.39
Premium Member CAT Tests
Re: For many years, alcohol producers followed a self imposed  [#permalink]

Show Tags

New post 12 Nov 2018, 22:24
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.

Source : PowerScore


Difficulty Level: 650

Official Explanation

The structure of the argument is as follows:

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

This stimulus is relatively easy to understand: a comparison is made between alcohol producers who began to advertise on television and alcohol producers who initially did not. We are told that the producers that first began to advertise on television generally charged less for their products and that, if all advertisers began to advertise this way (with lower prices), then the consumers’ overall costs would be lower.

Answer choice (A): The information in the stimulus is about cost, not consumption. We cannot assume that increased advertising will automatically increase consumer consumption.

Answer choice (B): There is no way to know how alcohol producers who advertise on television will behave if other producers also begin to advertise. All we know is that if other producers begin to advertise similarly (i.e. charge less for their product), then overall consumer costs will decrease.

Answer choice (C): This is the correct answer. The stimulus tells us that when the first producers broke the ban and began to advertise, they generally charged less than non-advertising producers. So it must be true that those producers who did not initially advertise generally charged more for their products than the advertising producers.

Answer choice (D): The stimulus does not provide any information that would allow us to infer how alcohol producers might have behaved without the self-imposed advertising ban.

Answer choice (E): All that we can infer from the information provided is that if more producers begin to advertise and subsequently lower their prices, the overall cost to consumers will be lowered. We cannot know what effect that would have on the price of alcohol from producers who still choose not to advertise.

Hope it Help
_________________

Final days of the GMAT Exam? => All GMAT Flashcards.
This Post Helps = Press +1 Kudos
Best of Luck on the GMAT!!

GMAT Club Bot
Re: For many years, alcohol producers followed a self imposed &nbs [#permalink] 12 Nov 2018, 22:24
Display posts from previous: Sort by

For many years, alcohol producers followed a self imposed

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


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.