In the past, every ten-percentage-point increase in

Question

In the past, every ten-percentage-point increase in cigarette prices in the country of Coponia has decreased per capita sales of cigarettes by four percent. Coponia is about to raise taxes on cigarettes by 9 cents per pack. The average price of cigarettes in Coponia is and has been for more than a year 90 cents per pack. So the tax hike stands an excellent chance of reducing per capita sales of cigarettes by four percent.

Which of the following is an assumption on which the argument depends?

A. Tobacco companies are unlikely to reduce their profit per pack of cigarettes to avoid an increase in the cost per pack to consumers in Coponia.
B. Previous increases in cigarette prices in Coponia have generally been due to increases in taxes on cigarettes.
C. Any decrease in per capita sales of cigarettes in Coponia will result mainly from an increase in the number of people who quit smoking entirely.
D. At present, the price of a pack of cigarettes in Coponia includes taxes that amount to less than ten percent of the total selling price.
E. The number of people in Coponia who smoke cigarettes has remained relatively constant for the past several years.

deowl · Answer

Easy A

mahesh004 · Answer

clearly A.

apply negation theory.

kedarthumma · Answer

I am confused between A and B.

I think A is choice.
B is a supporting statement and is not assumption
If i am wrong then pls correct me.

jaynayak · Answer

I will go with B.

The assertion is that every ten-percentage-point increase in cigarette prices in the country of Coponia has decreased per capita sales of cigarettes by four percent. 
The author states that the taxes are going to increase and the cahnces are high that per capita sales of cigarettes is going to decrease by four percent.
That means the author is assuming that increasing the tax will increase the cost of per pack.
This is what is stated in B

OA???

capri · Answer

(A) here

amansingla4 · Answer

It is B.

itishaj · Answer

It does not matter hy the prices were increased. The question says that a 10% hike reduces the sales by 4%.Hence, not B

A is the right choice,

rurajase · Answer

We have to find substantial proof that the taxes is what drives the prices higher...NOT profit...NOT number of people...NOT how much taxes make up the selling price. The premise a.k.a fact states that every 10% raise in price causes sales to fall. If we can assume that it is the tax that causes the price to go higher then sales will fall. Ans. B

alfa_beta01 · Answer

"A" - The author is assuming that cig companies won't cut their profit margin in order to increase "per capita sale"

zoom612 · Answer

A.... <img src="{SMILIES_PATH}/icon_biggrin.gif" alt=":-D" title="Very Happy" />

jaynayak · Answer

A too doesnot say anything about sales.......it just says companies won't part with their profit. And the author says 10% hike reduces the sales by 4%, even if we consider A to be right, who knows by how much the companies are going to increase the prices by.

Natalya Khimich · Answer

A.

In the past, every ten-percentage-point increase in

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