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# If retail stores experience a decrease in revenues

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Manager
Joined: 11 Apr 2009
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If retail stores experience a decrease in revenues during [#permalink]

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13 Apr 2010, 19:14
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75% (hard)

Question Stats:

55% (01:38) correct 45% (01:33) wrong based on 176 sessions

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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.

Can someone give detailed explanations for elimination or choice of an option?
Thanks
[Reveal] Spoiler: OA
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Re: If retail stores experience a decrease in revenues during [#permalink]

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13 Apr 2010, 22:22
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C

prices have risen beyond the level most people can afford as salaries have not kept pace with rising prices .
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Re: If retail stores experience a decrease in revenues during [#permalink]

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13 Apr 2010, 22:42
the answer must be C in my opinion.
(C) Prices in retail stores have not risen beyond the level that most people can afford during this holiday season.

If salaries have kept pace with rising prices during the past year, only the above mentioned statement follows, out of the given five.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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15 Apr 2010, 06:47
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C.

Reason:

Premise: 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. (If X, then Y)

Assumption: Salaries have kept pace with rising prices during the past year (Not Y)

Conclusion: Prices haven't risen beyong the level most people can afford (Not X)
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Re: If retail stores experience a decrease in revenues during [#permalink]

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16 Apr 2010, 00:32
my vote for C as well. All other options make definitive statements that cannot be extrapolated from the given evidence. POE question.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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29 Jul 2010, 21:14
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.

Decrease in revenue ------------ (Change in gift giving Policy) or ( price that people can't afford)
( Retail Sales )

(Change in gift giving Policy)---------- ( festival season )
( price that people can't afford) ----- (Salary not in pace )
A----B-----D
A----C-----E

Correct Ans - E(Not) ---- C(Not)
Salary is in Pace ----- Price can be afford by people

Correct Ans - C)
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Re: If retail stores experience a decrease in revenues during [#permalink]

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03 Oct 2010, 23:17
Why it can't be A? Can someone pls explain. Thanks.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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04 Oct 2010, 00:22
amp0201 wrote:
Why it can't be A? Can someone pls explain. Thanks.

amp0201,

We have no clue that A must be true.
stem says: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?
so if salaries kept pace then retailers must not have risen the prices beyond... it has nothing to do with the change in the attitude

LSAT tends to puzzle us

hope it helps
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Re: If retail stores experience a decrease in revenues during [#permalink]

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04 Oct 2010, 05:05
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gmatprep09 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.

Can someone give detailed explanations for elimination or choice of an option?
Thanks

It can only be (C). A, D, and E all make the assumption that retail stores have experienced a decrease in revenue, but that is not a given piece of information - everything is IF there is a decrease in revenue. For B, you can't make that claim because there's another factor which could decrease revenues (attitudes about gift-giving have changed). You're left with C.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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07 Oct 2010, 08:15
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gmatprep09 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.

Can someone give detailed explanations for elimination or choice of an option?
Thanks

This question uses simple logic

Here we have the condition if A then B

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

Now if you apply negation to if A then B it becomes If Not B then Not A. (I learnt this in one of my deduction classes )
So the question stem says what happens in case of "Not B" [If salaries have kept pace with rising prices during the past year], see you dont have a not as the sentence in the question's last sentence had.

Then in this case the answer should be Not A. Which means Not [prices have risen beyond the level most people can afford]

Hence the answer has to be C.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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08 Oct 2010, 00:20
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Re: If retail stores experience a decrease in revenues during [#permalink]

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12 Jan 2011, 06:36
then either attitudes toward extravagant gift-giving have changed or prices have risen beyond the level most people can afford.

Eith X or Y happens.If Y does not happen then X happens.
C says Y does not happen . Then X must happen => A must be true too.
Doesnt anyone agree with me on this
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Re: If retail stores experience a decrease in revenues during [#permalink]

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13 Jan 2011, 22:35
gmatprep09 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.

ugh tough question, under time constraint, down to C & A, i had to go with choice (C), which seemed to be more generic than choice (A), based on the stem, where everything goes if...if...if, i didn't feel choice A fitted well for "must be true" answer...

wouldn't mind hearing some experts chime in.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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20 Apr 2011, 11:24
C.

if salaries have kept pace with rising prices during the past year

=> prices have not risen beyond the level most people can afford.

Using If X then Y... if not X then not Y.

(A) Attitudes toward extravagant gift-giving have changed. This can be considered only when retail stores experience a decrease in revenues during this holiday season. There is no mention that it actually happens. This seems to be shell game answer.
(B) Retail stores will not experience a decrease in retail sales during this holiday season.Again it is assuming the same.
(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.Same as A. We don't know whether the sales will reduce.
(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.This may happen only when revenues are reduced. The argument does not state any reason for it to happen.

Except option C..all other options are nicely manipulated, but all are wrong for simple reason - we really don't know revenues would reduce.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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27 Jun 2012, 02:57
Straight C. If salaries have kept pace with prices, then, per the premise, we can confidently infer that prices will not be beyond the reach of the said consumers.

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Re: If retail stores experience a decrease in revenues during [#permalink]

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19 Feb 2013, 11:36
gmatprep09 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.

fameatop wrote:
Can you Kindly explain this question as well.
Fame

In general, the Analytical Reasoning questions from the LSAT are slightly more challenging versions of the GMAT CR questions, and therefore make good practice for GMAT students who want to challenge themselves. This particular question relies a bit too heavily on formal logic --- that's fine for the LSAT, but GMAT students need not wrestle with this much formal logic.

This argument has the following formal design.
First sentence = If M, then N or P
Second sentence = If P, then not Q.

Here,
M = retail stores experience a decrease in revenues during this holiday season
N = attitudes toward extravagant gift-giving have changed
P = prices have risen beyond the level most people can afford
Q = salaries have kept pace with rising prices during the past year

The question stem tells us ---- assume Q. With this, we can use a variant of a classical argument type known as Modus Tollens.

MODUS TOLLENS: Given (If W, then Y) and (not Y), we can conclude (not W).

The argument gives us "If P, then not Q", and the question stem gives us Q, so according to Modus Tollens, we can conclude "not P" --- i.e. "Prices in retail stores have not risen beyond the level that most people can afford during this holiday season." This is precisely what (C) says.

Because we know nothing about the truth or falsehood of M, we can draw no conclusion about N. If we were given both "not P" and M, we could conclude N, but in the absence of information about M, we can conclude nothing about N.

Everything I have said here is well beyond what anyone needs to know for the GMAT. If love this stuff, then forget business school --- take the LSAT and become a lawyer. If you are set on the GMAT and business school, then the last thing you need to know is Modus Tollens.

Mike
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Re: If retail stores experience a decrease in revenues during [#permalink]

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19 Sep 2016, 02:44
There is no statement that retail stores experience a decrease in revenues.
So should be D.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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08 Oct 2016, 23:28
i don't quite agree with C cuz C is also in the condition that the sales decreases so there must be 2 variant that varies together
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Re: If retail stores experience a decrease in revenues during [#permalink]

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08 Oct 2016, 23:53
YangYichen wrote:
i don't quite agree with C cuz C is also in the condition that the sales decreases so there must be 2 variant that varies together

If you are aware of the logical deductions concept, you can solve this question In just 30 seconds.

To summarize the concept,

If p, then q means ~q => ~p.

Now, using this approach try solving the question. You will get the answer why C is correct.

If still not clear, let me know. I will try to help you.
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Re: If retail stores experience a decrease in revenues during [#permalink]

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18 Jan 2017, 00:37
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Also consider the fact that this argument is for future sale and talks conditional situation. So at this moment we know that salaries have kept pace with price rise and hence we can comment only on affordability and not on attitudes.

Re: If retail stores experience a decrease in revenues during   [#permalink] 18 Jan 2017, 00:37

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