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Re: Over the last five years, technological improvements have significantl [#permalink]
Thanks Tommy but that was over my head.
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Re: Over the last five years, technological improvements have significantl [#permalink]
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Let me try to put it more clearly.

The question tells us that there is some theoretical cost per gallon of gasoline (presumably quite high) at which it will finally be more economical to drive an electric car than a gas-powered one. Let's call that cost X. The question wants to know how it is that even though electric cars have become cheaper to operate (think of that as the cost of electricity), that value X has not changed.

Answer choice A merely tells us that gas, in the real world, has gotten cheaper. That's great. But it doesn't explain why that theoretical cost X hasn't changed. The only thing that could explain that would be that even though electric cars have gotten more efficient, so have gas-powered cars.

Hopefully that was clearer!

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Re: Over the last five years, technological improvements have significantl [#permalink]
Tommy Wallach, how come the theoretical cost X hasn't changed if technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars AND improvements in aerodynamics have made regular gas-powered cars more efficient to operate? I think these two factors should actually lower the theoretical cost X, but we know it has not changed. So I think there is a contradiction in your reasoning. Please answer.
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Re: Over the last five years, technological improvements have significantl [#permalink]
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sam117 wrote:
Tommy Wallach, how come the theoretical cost X hasn't changed if technological improvements have significantly reduced the cost of manufacturing and operating electric-powered cars AND improvements in aerodynamics have made regular gas-powered cars more efficient to operate? I think these two factors should actually lower the theoretical cost X, but we know it has not changed. So I think there is a contradiction in your reasoning. Please answer.
Thank you


I think I can elaborate a bit on what tommy is trying to say. Basically the question is comparing two costs, and these two costs help to derive a 3rd cost. In theory if one goes up or down, the third cost should be affected. Its tricky to explain, I hope you are with me on this. Now the argument says that the cost of one thing is going down, but the 3rd cost is not going down. It asks us to explain how this could have occurred. THis could only have occurred if the two original costs were going down in the same proportion or at-least headed in the same direction because the third cost is a balance of the two. Its like a see-saw, we have to balance the load on both sides to maintain a balance, which is being maintained. Hence the difference is countered by a reaction from the other side, in a direction that is already asserted in the argument. The cost of maintaining gasoline powered cars has to go down to maintain the balance and hence a steady cost (the third one which is a derivative of the first two costs).
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Re: Over the last five years, technological improvements have significantl [#permalink]
TommyWallach wrote:
Hey all,

Looks like a lot of you were heading in the wrong direction on this one, so I thought I'd weigh in. It's really important to pay attention to the exact wording of the conclusion here. "The cost per gallon at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged." That cost per gallon is a theoretical number that the price of gasoline would need to reach before operating an electric car would become more economical than operating a gas powered car. The ACTUAL price per gallon of gasoline cannot affect that theoretical number. If I tell you that electric cars won't be more efficient than gas powered ones until gas costs ten bucks a gallon, the fact that gas maybe went down to four bucks a gallon does nothing to EXPLAIN why gas needs to cost ten bucks a gallon. This means that A cannot be the answer.

The answer must be C. This is because if gas-powered cars have become more gas-efficient, that would move the theoretical cost per gallon price upwards (in other words, now that gas-powered cars are more efficient, electric cars have to be EVEN MORE efficient to be economical).

Hope that helps!

Tommy


Great answer, thank you! The theoretical price tripped me up for a second, I was pretty careless with this question.

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Re: Over the last five years, technological improvements have significantl [#permalink]
TommyWallach wrote:
Hey all,

Looks like a lot of you were heading in the wrong direction on this one, so I thought I'd weigh in. It's really important to pay attention to the exact wording of the conclusion here. "The cost per gallon at which it would become more economical to operate an electric car than a regular gas-powered car has remained unchanged." That cost per gallon is a theoretical number that the price of gasoline would need to reach before operating an electric car would become more economical than operating a gas powered car. The ACTUAL price per gallon of gasoline cannot affect that theoretical number. If I tell you that electric cars won't be more efficient than gas powered ones until gas costs ten bucks a gallon, the fact that gas maybe went down to four bucks a gallon does nothing to EXPLAIN why gas needs to cost ten bucks a gallon. This means that A cannot be the answer.

The answer must be C. This is because if gas-powered cars have become more gas-efficient, that would move the theoretical cost per gallon price upwards (in other words, now that gas-powered cars are more efficient, electric cars have to be EVEN MORE efficient to be economical).

Hope that helps!

Tommy

TommyWallach
and C suggests that the operating cost has gone down but how much? even 1% decrease is a decrease.
on the other hand, A suggest that price of gas(obviously a part of the operating cost) has reduced significantly.
this way both C and E are have similiar flaws i.e the degree of increase in its efficiency
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Re: Over the last five years, technological improvements have significantl [#permalink]
­Option C
Seems to be a tricky one but is not

Let's first understand what the question askes - 
the option which most supports why the break-even point between electric and gas cars hasn't changed despite the decreasing costs of electric carsT

Let's evaluate each option:

A. If prices of gasoline is reduced, it will make gas-powered cars more economically viable - should not be the option which supoprts the break-even.

B.
If the electric cars' manufacturers has been able to keep the produxction cost down, they should have reduced the car prices so that they could have shifted the break-even in favor of the electric cars.

C. Improvements in aerodynamics for gas-powered cars could make them more efficient, hence, burning up less fuel for its operation and that would empower to maintain a break-even with electric cars even if the gas-powered cars are a bit more expensive than the electric cars. This is the option we are looking for.

D.
there are very few electric cars on the road today - this says limited market penetration of electric cars. Nothing to do with break-even with gas-powered cars.

E. This talks about prioritization of public transport on rise of fuel prices. We can eliminate.

Hence, option C is the most feasible­
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