If retail stores experience a decrease in revenues during : GMAT Critical Reasoning (CR)
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# If retail stores experience a decrease in revenues during

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Manager
Joined: 22 Feb 2004
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Location: Seoul, South Korea
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If retail stores experience a decrease in revenues during [#permalink]

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06 Oct 2004, 22:57
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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.
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Senior Manager
Joined: 01 May 2004
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Re: CR: retail stores experience [#permalink]

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07 Oct 2004, 08:56
If A (retail stores experience a decrease in revenues during this holiday season) then either B(attitudes toward extravagant gift-giving have changed) or C(prices have risen beyond the level most people can afford). If B(attitudes have changed), then D (we all have something to celebrate this season). If C (prices have risen beyond the level most people can afford), then E (it must be that salaries have not kept pace with rising prices during the past year).

So, we have the following structure:
If A -> B->D
If A-> C-> E

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?
The question is If not E then what? The answer is -> then not C

a) Attitudes toward extravagant gift-giving have changed
nope.
b) Retail stores will not experience a decrease in retail sales during this holiday season.
nope.
c) Prices in retail stores have not risen beyond the level that most people can afford during this holiday season.
YES!!
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.

Manager
Joined: 22 Feb 2004
Posts: 50
Location: Seoul, South Korea
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07 Oct 2004, 17:23
Thanks, boksana!

I found that I misunderstood the first sentence.
Now it is very clear that the answer is C.
07 Oct 2004, 17:23
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