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# If retail stores experience a decrease in revenues

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Intern
Joined: 29 Dec 2016
Posts: 23
Concentration: Finance, Entrepreneurship
GMAT 1: 550 Q47 V20
GPA: 3.2
If retail stores experience a decrease in revenues [#permalink]

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03 Feb 2017, 09:04
4
If retail stores experience a decrease in revenues during this holiday season, then either attitudes toward extravagant gift-giving have changed or prices have risen beyond the level most people can afford. If attitudes have changed, then we all have something to celebrate this season. If prices have risen beyond the level most people can afford, then it must be that salaries have not kept pace with rising prices during the past year.

Assume the premises above to be true. If salaries have kept pace with rising prices during the past year, which one of the following must be true?

(A) Attitudes toward extravagant gift-giving have changed.

(B) Retail stores will not experience a decrease in retail sales during this holiday season.

(C) Prices in retail stores have not risen beyond the level that most people can afford during this holiday season.

(D) Attitudes toward extravagant gift-giving have not changed, and stores will not experience a decrease in revenues during this holiday season.

(E) Either attitudes toward extravagant gift-giving have changed or prices have risen beyond the level that most people can afford during this holiday season.
Math Expert
Joined: 02 Aug 2009
Posts: 5952
Re: If retail stores experience a decrease in revenues [#permalink]

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03 Feb 2017, 19:33
1
Nahid078 wrote:
If retail stores experience a decrease in revenues
during this holiday season, then either attitudes
toward extravagant gift-giving have changed or
prices have risen beyond the level most people can
afford. If attitudes have changed, then we all have
something to celebrate this season. If prices have
risen beyond the level most people can afford, then it
must be that salaries have not kept pace with rising
prices during the past year.

Assume the premises above to be true. If salaries
have kept pace with rising prices during the past year,
which one of the following must be true?

(A) Attitudes toward extravagant gift-giving have
changed.
(B) Retail stores will not experience a decrease in
retail sales during this holiday season.
(C) Prices in retail stores have not risen beyond
the level that most people can afford during
this holiday season.
(D) Attitudes toward extravagant gift-giving have
not changed, and stores will not experience a
decrease in revenues during this holiday
season.
(E) Either attitudes toward extravagant gift-giving
have changed or prices have risen beyond the
level that most people can afford during this
holiday season.

Hi
Let " retail stores experience a decrease in revenues during this holiday season" Be X
"attitudes toward extravagant gift-giving have changed" Be Y
"prices have risen beyond the level most people can afford " Be Z ..

So the Q becomes
If X then Y or Z. If Y then S and If Z then T..
Finally it is given NOT T..

So straight from " IF Z then T". If NOT T, then NOT Z..

Z is "prices have risen beyond the level most people can afford "
So NOT Z will be "prices have NOT risen beyond the level most people can afford "
This is given in choice C..
C
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Intern
Joined: 25 May 2016
Posts: 3
Re: If retail stores experience a decrease in revenues [#permalink]

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07 Feb 2017, 23:52
If "salary has not kept pace" then "prices have risen beyond level" (A -----------> B)

If "salary has kept pace" then "prices have not risen beyond level" {A(NOT)--------------> B(NOT)} ---Is this the true logic isn't this has to be reverse i.e {B(NOT)--------------> A(NOT)}

Intern
Joined: 13 Jan 2017
Posts: 2
Location: Singapore
Schools: Rotman '20 (A)
GMAT 1: 700 Q48 V39
GPA: 3.46
Re: If retail stores experience a decrease in revenues [#permalink]

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19 Feb 2017, 15:34
Quote:
Hi
Let " retail stores experience a decrease in revenues during this holiday season" Be X
"attitudes toward extravagant gift-giving have changed" Be Y
"prices have risen beyond the level most people can afford " Be Z ..

So the Q becomes
If X then Y or Z. If Y then S and If Z then T..
Finally it is given NOT T..

So straight from " IF Z then T". If NOT T, then NOT Z..

Z is "prices have risen beyond the level most people can afford "
So NOT Z will be "prices have NOT risen beyond the level most people can afford "
This is given in choice C..
C

Hi,

Thanks for your explanation. Just one thing though, does this necessarily mean that A is wrong? Because if X then Y or Z; and NOT Z should then imply Y, if X.
Director
Affiliations: CrackVerbal
Joined: 03 Oct 2013
Posts: 518
Location: India
GMAT 1: 780 Q51 V46
Re: If retail stores experience a decrease in revenues [#permalink]

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20 Feb 2017, 19:38
1
Top Contributor
rohan2310 wrote:
Quote:

Hi,

Thanks for your explanation. Just one thing though, does this necessarily mean that A is wrong? Because if X then Y or Z; and NOT Z should then imply Y, if X.

No you cannot make this assumption. You missed out on the "if X" part in your question.
Y (attitude change) or Z (price increase beyond the level people can afford) are the two alternatives IF X (decrease in revenues) happens.

It is perfectly possible that both Y and Z do not happen and consequently, X does not happen. The argument does not say for sure whether X has happened or not.

by the way, the negation of
if X --> Y OR Z IS NOT Y AND NOT Z --> NOT X. (the argument is not this - Y --> NOT Z/Z --> NOT Y).

A is incorrect because we cannot say with certainty whether attitudes have changed(Y). that is whether Z happens or not has no bearing on Y.

Hope this helps
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Senior Manager
Joined: 24 Oct 2016
Posts: 294
Location: India
Schools: IIMB
GMAT 1: 550 Q42 V28
GPA: 3.96
WE: Human Resources (Retail Banking)
Re: If retail stores experience a decrease in revenues during [#permalink]

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28 Feb 2017, 22:30
the answer must be C however i have a doubt regarding option A can someone explain why we should not go with this as it is mentioned in stimulus that there are either attitude or rise in prices reason for the decline in revenue , or any other reason may cause to decline in revenue that it not mentioned ?
Verbal Expert
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Posts: 3200
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Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
Re: If retail stores experience a decrease in revenues during [#permalink]

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04 Mar 2017, 12:59
2
nks2611 wrote:
the answer must be C however i have a doubt regarding option A can someone explain why we should not go with this as it is mentioned in stimulus that there are either attitude or rise in prices reason for the decline in revenue , or any other reason may cause to decline in revenue that it not mentioned ?

Let,
Z: retail stores experience a decrease in revenues during this holiday season
A: attitudes toward extravagant gift-giving have changed
B: prices have risen beyond the level most people can afford

X: we all have something to celebrate this season
Y: salaries have not kept pace with rising prices during the past year.

The passage states the following:
IF Z, THEN either A OR B.
IF A, THEN X
IF B, THEN Y

Given NOT X.

Now, as per basic logic rules.
IF A, THEN X
implies:
IF NOT X, THEN NOT A. Thus option C is correct.

Nothing can be inferred about B and Y when NOT X is given.

It is not given that Z happens. Thus you cannot say that NOT A also implies that B happens. Hence your argument is wrong.

If the question were as follows then option A could be the correct option:

If retail stores experience a decrease in revenues during this holiday season AND salaries have kept pace with rising prices during the past year, which one of the following must be true?

However the blue part is missing in the question. Thus A is wrong.
Re: If retail stores experience a decrease in revenues during   [#permalink] 04 Mar 2017, 12:59

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