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# If shoplifting at ToySMart continues at the current rate

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If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 07:58
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If shoplifting at ToySMart continues at the current rate, the shop's owner will be forced to close the store. Raising the prices of the goods sold at ToySMart by 10% will help make up the shortfall in the store's income; this change will therefore protect ToySMart from having to close.

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

A. Visitors to the store will be more likely to consider purchasing more of the shop's less-expensive products.
B. The rise in prices will have no effect on the number of goods sold, even if the rate of shoplifting remains the same.
C. The rise in prices will not induce visitors who otherwise would not have shoplifted to shoplift items they can now not afford.
D. The store owner's profits are important to the majority of the shoppers at ToySMart.
E. Other stores may experience an increase in shoplifting as the practice is reduced at ToySMart.
[Reveal] Spoiler: OA

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 12:44
I am not sure what is wrong with B i just feel we are not concerned with people worried about the price. We are concerned about shoplifting so I just want to stick to that.
So if he increases the price the shortcoming would be met. And it WOULD not result in increase in the shoplifting too.
And I guess this is the assumption the author is making.
Rather than worrying about the impact on sale by the price increase.

Though I also felt B is the answer in the first glance.

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If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 13:21
veteranrookie wrote:
I am not sure what is wrong with B i just feel we are not concerned with people worried about the price. We are concerned about shoplifting so I just want to stick to that.
So if he increases the price the shortcoming would be met. And it WOULD not result in increase in the shoplifting too.
And I guess this is the assumption the author is making.
Rather than worrying about the impact on sale by the price increase.

Though I also felt B is the answer in the first glance.

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The conclusion of the argument is "Increase in prices will protect toysmart from closing"

Option B:
1. Prices increased
2. Number of Goods sold remain same
3. Rate of shop lifting same

From all the above three, I can concluded that the plan will work.

I agree Option C is far better than B. But I would like to know how option B is flawed.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 14:28
Please explain why C is a better option than B.
In my opinion, the assumption laid out in option B best supports the conclusion that raising the prices by 10% will makeup for the shortfall in the store's income. Option C seems much more indirect than option B.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 14:52
Even I agree with niteshwaghrey that option B makes more sense than option C, because B makes sure the sales remain the same, which will in turn make up for the shortfalls for the shoplifting - as mentioned in the premise - and strengthens the conclusion that the change will protect the store from having to close.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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12 Apr 2017, 21:12
maheshaero20 wrote:
veteranrookie wrote:
I am not sure what is wrong with B i just feel we are not concerned with people worried about the price. We are concerned about shoplifting so I just want to stick to that.
So if he increases the price the shortcoming would be met. And it WOULD not result in increase in the shoplifting too.
And I guess this is the assumption the author is making.
Rather than worrying about the impact on sale by the price increase.

Though I also felt B is the answer in the first glance.

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The conclusion of the argument is "Increase in prices will protect toysmart from closing"

Option B:
1. Prices increased
2. Number of Goods sold remain same
3. Rate of shop lifting same

From all the above three, I can concluded that the plan will work.

I agree Option C is far better than B. But I would like to know how option B is flawed.

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I cant find any correlation between the number of shoplifted products and the price of a product.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 02:04
Here the author is assuming that the price increase would make the profit needed to meet the shortcoming and keep the shop working, and not result in a loss which would result in closing down shop.

So he is here assuming that the price would be increased, so it'll be profitable.

Assumption is that even when I do the price increase, it'll not cause more people to start stealing cause the price is more which is the main problem in the neighborhood. Which would result in more loss.

Then maybe I can assume it may result in problems selling stuff to people who are genuine people who pay for their stuff.

I am sorry if I am not articulate. But then the other way I came to this was that
I just use the negation technique, and then it just made the option C shine brighter as the answer.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 05:25
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niteshwaghray wrote:
Please explain why C is a better option than B.
In my opinion, the assumption laid out in option B best supports the conclusion that raising the prices by 10% will makeup for the shortfall in the store's income. Option C seems much more indirect than option B.

arjun90 , niteshwaghray

IMO,
What if as a result of price increase people switch from buying earlier cheaper items to now cheaper items. No of goods sold remain the same and given the rate of shoplifting remains the same,
That needn't increase the profits required to maintain the store.
Also when you negate it doesnt shatter the conclusion.
The change in no of goods sold can be both an increase and decrease. This is not shatter proof. hence IMO b is wrong.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 06:20
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Just imagine in B, if the number of people increase by a 100% and the rate remains the same, so percentage wise, higher number of people will steal and the sale remains steady. How does this help the store??

Hence B is incorrect.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 09:22
Choice C is stated in an indirect way to make readers confused. It just stated that raising prices makes people can't afford goods. Hence, they are unlikely to shoplift items. This means the shoplifting rate will decrease and protects the store from closing.
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If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 10:52
niteshwaghray wrote:
Please explain why C is a better option than B.
In my opinion, the assumption laid out in option B best supports the conclusion that raising the prices by 10% will makeup for the shortfall in the store's income. Option C seems much more indirect than option B.

Though not an expert, I will try to explain the twist here.The essence of the argument is, the changes, i.e. 10% hike in price, should not alter(rather increase) the shoplifting rate.

Let's break the argument.

If shoplifting at ToySMart continues at the current rate, the shop's owner will be forced to close the store.

--> Say there are 10 customers, out of which 3 customers shoplift. To keep same proportion, lets say out of 100\$ goods, 30\$ goods are shoplifted.

Raising the prices of the goods sold at ToySMart by 10% will help make up the shortfall in the store's income

--> This says, increase of 10% amount, is going to counter the 30\$ loss (Hint- What if, because of 10% increase, 30\$ itself increases??)

Option B Says - The rise in prices will have no effect on the number of goods sold, even if the rate of shoplifting remains the same.
If 30\$ is constant, people will still buy goods worth of 100\$.
We aren't interested in this case, we want to cover the scenario that the increase of 10% is actually not going to boost shoplifters to go beyond 30\$

Option C Says - The rise in prices will not induce visitors who otherwise would not have shoplifted to shoplift items they can now not afford.
Well, twisted statement. Lets simplify..

The rise in prices (i.e. 10%) will not induce visitors (Not Promote visitors) who otherwise would not have shoplifted (Not Shoplifted --> Bought) to shoplift items they can now not afford.

--> The rise is not going to promote the people, who otherwise would have bought the goods, to shoplift. (This is what we were looking for)

Hope its clear. Kudos if helped..

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 19:34
B is wrong because it focusses on "prices and SALE". we are only concerned with "Prices and shoplifting".
B is a trap option.
Hence C

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If shoplifting at ToySMart continues at the current rate [#permalink]

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13 Apr 2017, 20:08
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If shoplifting at ToySMart continues at the current rate, the shop's owner will be forced to close the store. Raising the prices of the goods sold at ToySMart by 10% will help make up the shortfall in the store's income; this change will therefore protect ToySMart from having to close.

Type - Assumption
Boil it down - Raising price by 10 % will help make up the shortfall in income and protect from store closure
Pre-thinking - Price hike will not alter the behavior of the consumers. The plan might fail if
- There is a significant decrease in sales
- Percentage of consumers who shoplift has increased i.e people who did not shoplift before the hike have started to shoplift
Revenue = Number of units sold * price per unit

A. Visitors to the store will be more likely to consider purchasing more of the shop's less-expensive products. - irrelevant
B. The rise in prices will have no effect on the number of goods sold, even if the rate of shoplifting remains the same. - "no effect " is vague and can refer to increase or decrease of the number of goods sold. Incorrect
C. The rise in prices will not induce visitors who otherwise would not have shoplifted to shoplift items they can now not afford. - If before the price hike, suppose 5 percent of shoppers used to shoplift, but after the 10 percent hike, there is a significant increase in the percentage of people who shoplift, then the argument will fall apart. - Correct
D. The store owner's profits are important to the majority of the shoppers at ToySMart. - irrelevant
E. Other stores may experience an increase in shoplifting as the practice is reduced at ToySMart. - irrelevant

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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15 Apr 2017, 22:26
hi
expert , please put your though on these options B and C , to me why C should be the answer as because if we negate it states that if the rate of shoplifting still increasing than whether prices increases or not the store cannot make up the balance so to adjust the loss with extra income due to price increase the rate of shoplifting should not be raise .

please correct me where am i wrong !
thanks

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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25 Apr 2017, 20:19
I narrowed it to B and C.
Used Nagation technique .
on B and on C .
Negation of B gives ambiguity, while Negation of C perfectly nukes the conclusion.

IMO its C.

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Re: If shoplifting at ToySMart continues at the current rate [#permalink]

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30 May 2017, 00:01
In B , if the numbers of goods sold reduces by say 50% then practically the increase in price will have no use, and the profitability of the store will decrease. As the focus is to make up the shortfall in the store's income and subsequently to keep the store from closing, B can also be a valid assumption.

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If shoplifting at ToySMart continues at the current rate [#permalink]

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05 Jun 2017, 21:02
onkargm wrote:
In B , if the numbers of goods sold reduces by say 50% then practically the increase in price will have no use, and the profitability of the store will decrease. As the focus is to make up the shortfall in the store's income and subsequently to keep the store from closing, B can also be a valid assumption.

Hi,
You always have to choose best among the rest. Statement in option B may or may not be valid.
1. Rise in prices may have a drastic or very little effect on the number of goods sold . For one of the extreme condition conclusion will hold , while for other it will not hold.
2. Moreover, the number of goods not sold after price increase may have low price , not affecting the profits significantly.

In correct option C . It is very clear that the shoplifting will increase and people will shoplift costly items , hurting the conclusion most. Therefore C is better than B.
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If shoplifting at ToySMart continues at the current rate   [#permalink] 05 Jun 2017, 21:02
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