It is currently 17 Dec 2017, 06:05

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Microeconomist: Usually, the relationship between the price

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Joined: 15 Sep 2015
Posts: 6

Kudos [?]: [0], given: 0

Re: Microeconomist: Usually, the relationship between the price [#permalink]

Show Tags

New post 14 Feb 2016, 15:12
Whenever it says circumstance it means an evidence or fact, E is ruled out since the second part is not an evidence or fact. C wins the race by miles.

Kudos [?]: [0], given: 0

1 KUDOS received
Senior Manager
Senior Manager
User avatar
G
Joined: 22 Nov 2016
Posts: 251

Kudos [?]: 65 [1], given: 42

Location: United States
Concentration: Leadership, Strategy
GPA: 3.4
Reviews Badge CAT Tests
the relationship between the price of a good [#permalink]

Show Tags

New post 26 Jul 2017, 16:20
1
This post received
KUDOS
Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather than decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household’s budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.

In the argument above, which of the following statements best describes the role played by each portion in boldface?

A) The first is evidence that the microeconomist provides in support of a certain prediction; the second is that prediction.
B) The first is a generalization that the microeconomist accepts as true; the second is a consequence that follows from that generalization.
C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.
D) The first acknowledges a consideration against the main conclusion of the microeconomist; the second is that conclusion.
E) The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

_________________

Kudosity killed the cat but your kudos can save it.

Kudos [?]: 65 [1], given: 42

Senior Manager
Senior Manager
User avatar
G
Joined: 22 Nov 2016
Posts: 251

Kudos [?]: 65 [0], given: 42

Location: United States
Concentration: Leadership, Strategy
GPA: 3.4
Reviews Badge CAT Tests
Re: the relationship between the price of a good [#permalink]

Show Tags

New post 26 Jul 2017, 17:52
Rambo123 wrote:
IMO C
What is the OA?

Sent from my A0001 using GMAT Club Forum mobile app


It is C. You can click Reveal to show the OA.
_________________

Kudosity killed the cat but your kudos can save it.

Kudos [?]: 65 [0], given: 42

Verbal Forum Moderator
avatar
B
Joined: 13 Feb 2015
Posts: 812

Kudos [?]: 9 [0], given: 32

Premium Member
Re: Microeconomist: Usually, the relationship between the price [#permalink]

Show Tags

New post 26 Jul 2017, 22:02
Merged topics. Please, search before posting questions!
_________________

Please Read: Verbal Posting Rules

Kudos [?]: 9 [0], given: 32

Intern
Intern
avatar
B
Joined: 26 Sep 2017
Posts: 19

Kudos [?]: 0 [0], given: 20

Location: India
Schools: ISB '19, NUS '20, NTU '19
GMAT 1: 700 Q50 V35
GPA: 3.7
Re: Microeconomist: Usually, the relationship between the price [#permalink]

Show Tags

New post 07 Oct 2017, 07:09
crejoc wrote:
Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household’s budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.

In the argument above, which of the following statements best describes the role played by each portion in boldface?

A) The first is evidence that the microeconomist provides in support of a certain prediction; the second is that prediction.

B) The first is a generalization that the microeconomist accepts as true; the second is a consequence that follows from that generalization.

C) The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

D) The first acknowledges a consideration against the main conclusion of the microeconomist; the second is that conclusion.

E) The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

OA :
[Reveal] Spoiler:
C


What is the case at issue is not clear in the question. hence C & E are equally correct. can someone explain me what is the case in issue. Have the prices increased excessively? (not mentioned the question only compares two situation in one situation C (if the prices has gone up excessively) is correct in other E (if prices have not gone up excessively).

Kudos [?]: 0 [0], given: 20

Re: Microeconomist: Usually, the relationship between the price   [#permalink] 07 Oct 2017, 07:09

Go to page   Previous    1   2   [ 25 posts ] 

Display posts from previous: Sort by

Microeconomist: Usually, the relationship between the price

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.