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GMAT Club Olympics 2024 (Day 4): Analyst Claim: The sales and

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11 Jul 2024, 08:22

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Answer C:
The assumption is that consumers have the price in first mind when choosing a vehicle, if it was for example the beauty that consumers cared about most, then reducing the cost wouldn't have increased the sales.

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Bunuel

This question was provided by GMAT Club
for the GMAT Club Olympics Competition

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(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
Maybe the charging station was always present, there is not information about this mentioned in the passage. Not an assumption that the argument depends on.
Eliminate.

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
Electric car cost is being compared and that it will become more affordable. There is no comparison with gasoline cars.
Eliminate.

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
If the city dwellers were not primarily motivated by cost savings, then the cost savings due to battery technology would not be the reason for the increase in sales and pre-sales of electric cars.
Keep.

(D) The cost of gasoline will remain stable throughout the year.
Not talking about the cost of gasoline at all as a factor.
Eliminate.

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
Argument not talking about demand-supply of electric cars at all. Out of Scope.
Eliminate.

Hence Option C is the answer

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Analyst claims that the the sales/pre-order of electric cars in urban area will significantly increase this year and this primarily due to reduction in the cost of Electric Cars.

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
Not a necessary assumption.

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
Irrelevant/Not a necessary assumption.

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
Analyst's claim is on the assumption that reduction in the electric car's price will lead to an increase in the sales/orders. Hence the assumption that buyers are primarily motivated by cost savings in a necessary assumption. Correct answer.

(D) The cost of gasoline will remain stable throughout the year.
Irrelevant/Not a necessary assumption.

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
Irrelevant/Not a necessary assumption.

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Conclusion: Cost saving due to battery improvements

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
Irrelevant in terms of the conclusion
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
Performance isnt discussed.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
Negate, and the arguments breaks.
(D) The cost of gasoline will remain stable throughout the year.
Cost of gasoline may affect but not directly.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
This is an important assumption as well, but it doesnt relate directly to the conclusion.

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Bunuel

This question was provided by GMAT Club
for the GMAT Club Olympics Competition

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Conclusion: sales and pre-orders of electric cars in urban areas will significantly increase this year.
Premises : ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.

Improvement in Battery technology --> lowered cost --> More affordable --> Hence more sales and pre-order.

Now in this question we can multiple assumptions. Like Battery technology alone is enough to drive sales up OR People choose cost over convenience.

Looking at the options.

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year. This is not a required assumption for our conclusion.
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars. This is not a required assumption for our conclusion. Maybe in real life this thing matters but in the argument we are not talking about performance. It is not a required assumption.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle. Bingo! This alligns with our prethinking.
(D) The cost of gasoline will remain stable throughout the year. This is not a required assumption for our conclusion.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year. This is not a required assumption for our conclusion.

hence the answer is C.

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(C) City dwellers are primarily motivated by cost savings when choosing a vehicle
If this wasn't true, then the argument wouldn't make sense - why would the sales rise significantly on EVs getting cheaper if the people didn't primarily care about price.
All other options discuss different parameters related to the decision of buying a new car but they aren't directly addressed in the argument and no assumptions regarding them is required.

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(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year. > Eliminate. Not relevant as does not impact the cost of electric cars. (Slightly weaken?)
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars. > Eliminate. Not relevant as does not impact the cost of electric cars (Slightly strengthen?)
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle. > Selected. related to cost
(D) The cost of gasoline will remain stable throughout the year. > Eliminate. We don't know impact that cost is low or high even it is stable. May positive or negative on electric cars.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year. > Eliminate. as it mentioned that "The sales and pre-orders of electric cars in urban areas will significantly increase this year"

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Which of the following is an assumption made in drawing the conclusion above?

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
The statement don´t say anything about infrastructure so not part of the consideration to increase the sales

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
The statement don´t assume or specify that the performance will lead an increase on sales when the prices drop.

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
Since more sales when the prices are lower, this is the perfect combination to assume that the main customer motivation to choose a vehicle is the price.
THIS IS THE CORRECT ANSWER

(D) The cost of gasoline will remain stable throughout the year.
The statement don´t assume or specify that the cost of gasoline will lead an increase on sales when the prices drop due battery prices.

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
The statement don´t specify anything about the manufacturing capability to satisfy the demand.

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11 Jul 2024, 08:54

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The assumption we are looking for should be somehow conneceted with affordability/money

(A) wrong
There is no information about availability of charging stations in the moment and there is no link with affordability

(B) wrong
There is no comparision with gasoline-powered cars in the reason on which the conlusion is drawn and there is no link with affordability

(C) correct
Cars are more affrodable and this asumption shows that price is the primary factor thta defines the choice.

(D) wrong
This assumption is connected with affordability, but in the reasons described there is no comparison with gasoline cars.

(E) wrong
No link with the affordability

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Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year. The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.

The main idea here is cost of electric car that shall boost sales and pre orders or the demand for this kind of car.
Pre think: The quality of many kind of cars remain stable, cost shall be the main criteria for dwellers to choose electric cars

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year. -> Irrelevant, no availability of stations mentioned
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars. -> If not, the dwellers may still choose electric cars to cut cost
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle. -> Yes, if not, they have no initiative to choose electric cars as their cost decrease
(D) The cost of gasoline will remain stable throughout the year. -> Irrelevant
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year. -> Irrelevant
Answer C

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11 Jul 2024, 08:56

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Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year. The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.

Above statement says that lower cost leads to higher sales

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.-Not relevant to lower cost driving sales
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.-Not relevant to lower cost driving sales
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.-relevant to lower cost driving sales
(D) The cost of gasoline will remain stable throughout the year.-Not relevant to lower cost of EV driving higher sales
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.-Not relevant to lower cost causing higher sales

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11 Jul 2024, 08:59

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Text can be simplified as
Tech improvement> low ecar cost> high affordability> high sales

Basically, low cost means high sales

Options A talks about infrastructure, a new information not presented in para

D talks of gasoline, irrelevant

B talks of speed and comfort, new info

E more supply means cheap cost but the point is only on battery cost cutting not the whole vehicle

Hence A

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Option C - As the paragraph primarily talks about cost

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Answer: C

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.

NOT about cars; claim is about cards, not infrastructure

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.

the claim does not talk about performance as being important for city dwellers, only cost

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.

the claim assumes the cost is related to electric car sales, this statement is about costs. YES!

(D) The cost of gasoline will remain stable throughout the year.

while this talks about costs, it's talking about the opposite direction which is gasoline cars. nothing to do with the claim.

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.

while we can assume offer and demand is implied in car cost, we cannot tell whether demand was higher than offer when the claim was made. therefore, we need to discard this answer.

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11 Jul 2024, 09:07

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Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year. The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.

Heart of arg : The sales and pre-orders of electric cars in urban areas will significantly increase this year because of....improvements in battery technology have substantially lowered the cost of electric cars

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year. (this is more of strengthener)

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars. (comparison with gasoline-powered cars is not of much use)

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
- this is clearly assumption. less cost -> more sales

(D) The cost of gasoline will remain stable throughout the year.
- if we negate we don't know how this will effect sales and pre-orders

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.

this might be a good consideration for the overall success of the sales/pre-order increase, it is not an assumption about why sales are expected to increase.

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11 Jul 2024, 09:09

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Quote:

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.

The argument is NOT concerned with Urban infrastructure, such as charging stations. Irrelevant
Incorrect

Quote:

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.

The argument is NOT concerned with the performance of electric cars, in terms of speed and comfort as compared with gasoline-powered cars. Irrelevant
Incorrect

Quote:

If City dwellers are primarily motivated by cost savings when choosing a vehicle, then lowering the cost of the electric cars with ongoing improvements in battery technology will make then more affordable and sales and pre-orders of electric cars will significantly increase this year.
If assumption is negated, then conclusion falls apart. If City dwellers are NOT primarily motivated by cost savings when choosing a vehicle, then lowering the cost of cars will NOT increase sales and pre-orders of electric cars this year.
Correct

Quote:

(D) The cost of gasoline will remain stable throughout the year.

The argument is NOT concerned with the cost of gasoline. Irrelevant
Incorrect

Quote:

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.

Since the argument is about increase in sales and pre-orders of electric cars this year, even if the production of electric cars will not be sufficient to meet the increased consumer demand this year, pre-orders can still increase.
Incorrect

IMO C

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11 Jul 2024, 09:10

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Bunuel

This question was provided by GMAT Club
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Reasoning: Sales and preorders will inc as the cars become more affordable.
People consider money while buying the cars.

A Out of scope.
B out of scope.
C Correct.
D Out of scope.
E Out of scope.

IMO C

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11 Jul 2024, 09:12

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Argument states that the lower cost of battery development leads the more purchase of the electric car. So we need to find the assumption of this argument. And we use NEGATION technique to get our answer from our five options.
A. Urban infrastructure, such as charging stations, WON'T become more widely available in city areas this year
in the real world, it definitely hurts our argument, but in our case it is all about the cost of battery, especially cost-wise, thus it doesn't hurt much.
B. The performance of electric car doesn't have any relationship with the cost of battery, it is irrelevant.
C. City dwellers are NOT primarily motivated by cost savings when choosing a vehicle.
Bingo!, if they don't need cost savings, why do they have to buy cars? why cost savings?
It can be our answer, but lets see remaining two choices.
D. The cost of gasoline is irrelevant to the battery cost savings
E. same as D
Thus correct answer (C)

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11 Jul 2024, 09:26

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Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year (Conclusion). The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars (cause), making them more affordable for city dwellers (intermediate effect).

Analyst's claim is that sales and pre-orders of electric cars in urban areas will significantly increase this year because ongoing improvements in battery technology have reduced cost of electric cars. This is the prime cause for cause of increase in sales & pre-orders. Because of reduction in cost of e-cars, city people can afford those.

Prethinking: Because of reduced cost of e-cars, decision of city people influenced to purchase those e-cars. No other cause led to influence people to buy those e-cars.

Which of the following is an assumption made in drawing the conclusion above?

(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year. Charging stations will become...providing future condition but not related to cause and effect reasoning or increase of sales. so wrong.

(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
Performance of e-cars comparable or above stating another reason. As cost was primary reason, not other reasons. so wrong.

(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
Cost factor comes in picture in this option. If we negate, "City dwellers are not primarily motivated by cost savings when choosing a vehicle", so it breaks down the conclusion. so correct option.

(D) The cost of gasoline will remain stable throughout the year.
Trap answer due to cost factor, but here the cost is related to gasoline whereas the argument is about e-cars. so out of scope.

(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
Again, this option reasoning is same as option B. As cost saving was primary reason for increase in sales or pre-orders, not availability of e-cars. so wrong.

IMO answer is C.

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11 Jul 2024, 09:27

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according to me d is the answer as negating option d weakens the conclusion of increase of sales.

conclusion: there will be increase of sale this year

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