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# Pretzel Vendor: The new license fee for operating a pretzel stand outs

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Re: Pretzel Vendor: The new license fee for operating a pretzel stand outs [#permalink]
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Pretzel Vendor: The new license fee for operating a pretzel stand outside the art museum is prohibitively expensive. Charging typical prices, I would need to sell an average of 25 pretzels per hour to break even. At my stand outside City Hall, with about as many passers-by as at the art museum, I average only 15 per hour. So I could not break even running a stand outside the art museum, much less turn a profit.

Which of the following, if true, most seriously weakens the pretzel vendor's argument?

A. The pretzel vendor does not sell anything other than pretzels. -- Out-of-scope. We don't know about the profitability of other products
B. People who visit the art museum are more likely to buy pretzels than are people who go to City Hall. -- CORRECT, this says that the premise on which the pretzel vendor bases his argument (At my stand outside City Hall, with about as many passers-by as at the art museum, I average only 15 per hour) is wrong, thus weakening his conclusion. The vendor could sale much more than average of 25 pretzels for all we know.
C. The license fee for operating a pretzel stand outside City Hall will not increase. -- The current license fee is prohibitive enough for the vendor. So IRRELEVANT
D. People who buy pretzels at pretzel stands are more likely to do so during the lunch hour than at other times. -- Since we are counting the average, time of the day doesn't matter
E. The city will grant more licenses for pretzel stands outside the art museum than the number it grants for stands outside City Hall. -- Whether the vendor can procure a license is not at issue here. We are worried whether he can pay for it.

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Pretzel Vendor: The new license fee for operating a pretzel stand outs [#permalink]
This question is very similar to another one, from "GMAT Official Practice Questions 1" (https://www.mba.com/exam-prep/gmat-offi ... -questions): https://gmatclub.com/forum/pretzel-vend ... 50404.html
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Re: Pretzel Vendor: The new license fee for operating a pretzel stand outs [#permalink]
Stimulus: B; P; P; C Conclusion: I could not break even running a stand outside the art museum, much less turn a profit.
A. This strengthens more than anything
a. He’s saying that he sells only 15 pretzels rn, but has to sell 25 to break even in front of the art museum. How is he going to sell even more (to break even/turn a profit) in front of the art museum, if (1) the number of people that pass by are relatively the same AND (2) does NOT sell anything other than pretzels (AKA all he sells are pretzels)
B. Okay so we have more intent of people buying pretzels
a. Same frequency, but more people willing. This seems pretty promising to weaken that he won’t even break even (AKA increase from 15 to 25)
b. Shows another side to the argument
C. We’re talking about how he won’t break even (much less turn a profit) in front of the art museum
a. Not talking about the same venue for the conclusion
b. C is out for sure
D. When these people get the pretzels are irrelevant
a. the stimulus talks about average per hour
b. this still has the same elements
E. strengthen if anything
a. more licenses -> more vendors -> more competitors -> fewer pretzels sold -> hit on sales -> not break even
b. also comparison between pretzels sold outside the art museum and pretzels sold outside city hall is irrelevant

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Re: Pretzel Vendor: The new license fee for operating a pretzel stand outs [#permalink]
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Let’s understand the premises and conclusion of the pretzel vendor’s argument.

Premises

The new license fee for operating a pretzel stand outside the art museum is very expensive.
Charging typical prices for pretzels, I would need to sell an average of 25 pretzels per hour to break even.
At my stand outside City Hall, with about as many passers-by as at the art museum, I average only 15 per hour.

Conclusion

So I could not break even running a stand outside the art museum, much less turn a profit.

We need to find an option that weakens the conclusion that the vendor wouldn’t be able to break even or turn a profit by running a stand outside the art museum.

A. The pretzel vendor does not sell anything other than pretzels.

This means that the only way for the vendor to make money is by selling pretzels because he does not sell anything else. If we consider the information given in the stimulus, option A only strengthens the conclusion. Eliminate.

B. People who visit the art museum are more likely to buy pretzels than are people who go to City Hall.

The stimulus says- At my stand outside City Hall, with about as many passers-by as at the art museum, I average only 15 per hour.
Option B says that the people who visit the art museum are more likely to buy pretzels than are people who go to City Hall.

If people who visit the art museum are more likely to buy pretzels than are people who go to City Hall, then the vendor will be able to sell more than 15 per hour. This will add to the possibility to break even or even turn a profit.
Option B weakens the conclusion that the vendor will not be able to break even or turn a profit by setting a stand outside the art museum. Correct.

C. The license fee for operating a pretzel stand outside City Hall will not increase.
So? This does not impact the conclusion. Eliminate.

D. People who buy pretzels at pretzel stands are more likely to do so during lunch hour than at other times.

It doesn’t matter WHEN people buy pretzels at pretzel stands. Eliminate.

E. The city will grant more licenses for pretzel stands outside the art museum than the number it grants for stands outside City Hall.

The conclusion is that the vendor will not be able to break even or turn a profit by setting a stand outside the art museum. Option E does not impact the conclusion. Eliminate.

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Re: Pretzel Vendor: The new license fee for operating a pretzel stand outs [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Pretzel Vendor: The new license fee for operating a pretzel stand [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Pretzel Vendor: The new license fee for operating a pretzel stand [#permalink]
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