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# Microeconomist: Usually, the relationship between the price

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

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Updated on: 09 Aug 2009, 11:05
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Question Stats:

61% (01:16) correct 39% (01:26) wrong based on 445 sessions

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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 :

Originally posted by crejoc on 09 Aug 2009, 10:32.
Last edited by crejoc on 09 Aug 2009, 11:05, edited 2 times in total.
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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09 Aug 2009, 10:54
soumen4u wrote:
Option C

THE OA IS C... CAN YOU EXPLAIN IT...
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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09 Aug 2009, 11:03
Siddharth wrote:
which is the part in bold?

sorry there is some mistake, now it is correct.. sorry for the delay..
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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09 Aug 2009, 22:49
Cannot differentiate between choice C and choice E. What is the difference between the two?
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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10 Aug 2009, 01:07
2
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.

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.

I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.

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

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10 Aug 2009, 01:59
acer2knight wrote:
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.

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.

I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.

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Thank you for the clarification.
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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10 Aug 2009, 18:00
C, good one. the first bold part is a pattern that theh economist predicts will not hold...as the word "usually..." suggest....the second part is the predicted case...
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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14 Aug 2009, 18:16
acer2knight wrote:

C)
I was contemplating between C abd E but in E "The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue" is wrong I guess. He predicts that it WILL NOT repeat as mentioned in C and hence it should be C.

very good explanation... kudos..
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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20 Oct 2009, 21:37
What are the chances that this type of question will pop up on the D day?
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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22 Oct 2009, 12:51
I don't like the word "predict" in the option C because there is no clear sign that the Microeconomist predicts anything. So I was actually struggling between C and D. But I think D is more awkward and up-side-down.
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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23 Oct 2009, 03:49
eresh wrote:
What are the chances that this type of question will pop up on the D day?

LOL...guees what...I just took the gmatprep today and this boldface type of question was the first I encountered.
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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13 Jan 2013, 16:26
Sorry to revisit but can anyone clarify how to determine which statement is the conclusion within this argument? I have no idea how to determine which statement was the conclusion in this question?
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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14 Feb 2016, 16:12
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.
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the relationship between the price of a good [#permalink]

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26 Jul 2017, 17:20
1
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.

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Re: the relationship between the price of a good [#permalink]

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26 Jul 2017, 18:52
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.
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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26 Jul 2017, 23:02
Merged topics. Please, search before posting questions!
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Re: Microeconomist: Usually, the relationship between the price [#permalink]

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07 Oct 2017, 08:09
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 :

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).
Re: Microeconomist: Usually, the relationship between the price   [#permalink] 07 Oct 2017, 08:09
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