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# price supports

Author Message
Senior Manager
Joined: 05 Oct 2006
Posts: 266

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03 Nov 2006, 19:00
while price supports for dairy products will save jobs in the dairy industry,they will also endanger jobs in other food industries.because price supports will make dairy products more expensive,families will spend a greater portion of their food budgets on dairy products.

the author's argument depend on which of the following premises?

1. most consumers would not prefer low priced dairy products to other lower priced food items.

2. consumer would spend more money on other types of food if there were no dairy price supports.

3. the quality of dairy products sold will decrease if price supports are implemented.

4. if dairy price supports are implemented ,there will be an increase in the number of jobs in the dairy industry.

5. if price supports for other food products are implemented,sales of those products would decline.

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VP
Joined: 21 Aug 2006
Posts: 1011

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03 Nov 2006, 19:35
Only B appeals to me.
_________________

The path is long, but self-surrender makes it short;
the way is difficult, but perfect trust makes it easy.

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Director
Joined: 06 Sep 2006
Posts: 734

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03 Nov 2006, 19:55
Consumers buying power will reduce with higher dairy prices. So, they
will not be able to buy non-dairy related products. Hence a potential for job loss in that sector of economy.

So B.

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Director
Joined: 24 Aug 2006
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Location: Dallas, Texas

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03 Nov 2006, 20:34
B
_________________

"Education is what remains when one has forgotten everything he learned in school."

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Senior Manager
Joined: 13 Sep 2006
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Location: New York

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03 Nov 2006, 21:19
B by POE - other don't make any sense or irrelevent in my opinion
_________________

"Never let the fear of striking out get in your wayâ€

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Manager
Joined: 29 Jul 2006
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03 Nov 2006, 22:05
B for me as well

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Manager
Joined: 29 Aug 2006
Posts: 156

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04 Nov 2006, 12:09
B from me too...have a feeling this has been discussed recently.

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Senior Manager
Joined: 05 Oct 2006
Posts: 266

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05 Nov 2006, 22:26
oa is B

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Director
Joined: 23 Jun 2005
Posts: 838

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GMAT 1: 740 Q48 V42

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05 Nov 2006, 22:34
The argument contends that once people spend a greater proportion of money on dairy products, the proportion spent on other food items will decrease. But, if the consumers spent only a fixed amount on other food items, irrespective of the price of dairy products, then the argument loses its credibility.

Only B defines this premise.

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VP
Joined: 15 Jul 2004
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Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)

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06 Nov 2006, 23:11
Cool.. B for me as well...

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Director
Joined: 19 Mar 2007
Posts: 522

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29 Jun 2007, 05:17
B

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Senior Manager
Joined: 11 May 2004
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29 Jun 2007, 05:20
nick_sun wrote:
B

I think its TYPO. C clearly out of scope.
Quality is not discussed in the argument.

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29 Jun 2007, 05:20
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