The demand for tires is considered to be a 'derived demand.'

Question

The demand for tires is considered to be a 'derived demand.' That is to say, much of the demand for tires is based on the demand for cars. In a time when the demand for cars drops, the demand for tires generally drops as well, and by a similar amount. In urban locations, however, the demand for cars is typically lower than other areas, and the demand for tires is not considered a derived demand. 

Which of the following statements, if true, most strengthens the argument above?

A) Most urban cities have decent public transportation systems.

B) There are many people who live in urban locations who drive cars.

C) High costs for parking lead to lower demand for cars.

D) Tires wear out more quickly on urban streets due to potholes.

E) In urban locations, there are no other uses for tires besides on cars.

ps_dahiya · Answer

Is it E???

A and C strengthen the conclusion that demand for tires is a derived demand.

D is out of scope. B weakens the conclusion.

shahnandan · Answer

I'm stuck between D and E.

In E, if tires dont have any use other than cars then dont you think that tire sales are all the more dependent on car sales. Had they been of use other than cars then it would in fact strengthen the conclusion that in urban areas the demand for tires is not derived (from cars)

In D , however, it gives reason to think that the demand is not derived because these potholes might cause wear and tear which might affect the demand for tires and hence sales are NOT dependent on car sales. I might just choose  D . 

Just my opinion, I might be wrong.

arunsanand · Answer

I am caught between A and D. 

A because urban areas have decent public transportation which means that tyre sales could also be dependent on the public transportation means. 

D because tyre sales could be tied with the wearing out of tyres rather than car sales.

ywilfred · Answer

D --> tells us that tires are not dependent on demand for cars but something else.

ps_dahiya · Answer

Very true. I thought the opposite. Hope this doesn't happen on G-Day

freetheking · Answer

IMO D.
D exactly tells that the demands of tires are not derived from those of cars.

jaynayak · Answer

The choice is between A and D.

A gives a reason why demand of cars may be lower.
D gives a reason why demand for tires are not dependent on demand for cars.

Both look good but will go with D. Address the issue of demand for tires.

Futuristic · Answer

Straight D. 

The idea is to find something that supports or provides a reason for the observation that (demand for tires / demand for cars) is higher in urban areas than in other places.

Futuristic · Answer

Straight D. 

The idea is to find something that supports or provides a reason for the observation that (demand for tires / demand for cars) is higher in urban areas than in other places.

u2lover · Answer

was a tough choice b/w A and D for me too, but I picked the correct D

OA is D OE: The difficulty here is that the reader is forced to understand derived demand based on the quick definition given. There is also misleading information such as 'the demand for cars is lower in urban locations' which in the passage sort of implies that it is the cause for the lack of consideration of tires as a derived demand in urban locations. However, if in fact tires are not considered to have a derived demand in urban locations, it essentially means that the demand for tires is not tied as closely to the demand for cars, i.e. there are some other uses for tires or some considerations causing people to need more tires other than just the purchase of a new car. If people are forced to replace tires more frequently in urban locations due to pothole wear and tear, then this is the component of tire demand that is not derived. Therefore, the answer is D.

xsports · Answer

Don't understand what the confusion was - clearly D.

Raghavender · Answer

the 1st time, thot the q was too simple....and jus read it once and went with E. 

But after cing ur arguments...realized my foolishness and reread the q n goin with D

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The demand for tires is considered to be a 'derived demand.'

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