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The new drug Prozac and the old one Elavil are about equally effective in treating various forms of depression, although patients on the newer drug may have slightly fewer side effects. Thus, revenue from the sale of the new drug is going to far exceed the revenue from the sale of the old drug.
All of the following statements weaken the conclusion of the argument above, EXCEPT:
(A) Elavil is also used as a powerful anti-emetic medicine. (B) The Drug Control Authorities in six states have refused to allow the sale of Prozac till some more tests are carried out. (C) Some side effects of Elavil are common to Prozac as well. (D) Prozac is not recommended as an anti-depressant for diabetics and heart patients. (E) The unit sale price of Elavil is higher than that of Prozac.
I want to discuss so don't just type in your answer (that is why I have provided the OA). Do explain.
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Originally posted by Dawgie on 19 Sep 2010, 10:21.
Last edited by Dawgie on 19 Sep 2010, 10:33, edited 1 time in total.
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The new drug Prozac and the old one Elavil are about equally effective in treating various forms of depression, although patients on the newer drug may have slightly fewer side effects. Thus, revenue from the sale of the new drug is going to far exceed the revenue from the sale of the old drug.
All of the following statements weaken the conclusion of the argument above, EXCEPT:
Ok, what doesn't weaken the conclusion: Thus, revenue from the sale of the new drug is going to far exceed the revenue from the sale of the old drug.
(A) Elavil is also used as a powerful anti-emetic medicine. Could potentially weaken it, if Elavil has other uses, this could raise the revenue for Elavil and not Prozac. (B) The Drug Control Authorities in six states have refused to allow the sale of Prozac till some more tests are carried out. Could weaken conclusion once again, Prozac sales will drop. (C) Some side effects of Elavil are common to Prozac as well. Answer is right here, who cares if they have common side effects, it was stated in the stimulus that Prozac has fewer. This doesn't weaken the conclusion. (D) Prozac is not recommended as an anti-depressant for diabetics and heart patients. Could weaken sales of Prozac. (E) The unit sale price of Elavil is higher than that of Prozac. Could increase Elavils revenues, since the sales price is higher
I want to discuss so don't just type in your answer (that is why I have provided the OA). Do explain.
Dawg, You said: "(E) The unit sale price of Elavil is higher than that of Prozac. Could increase Elavils sales, since it is cheaper"
The unit price of Elavil is higher. so how does that make it cheaper?
Edited/Corrected: The higher sales price could increase the revenues of the old drug, Elavil.
Discuss.
But we do not know how many units Elavil or Prozac sold. So we can't use this option.
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Yup. So if Prozac has the same benefits as Elavil and fewer side effects and on top of this Prozac is cheaper. Guess what... people are going to go for Prozac. This is the one that not weakens but STRENGTHENS the argument and hence should be the answer. We are asked to which of these option do the opposite of weaken i.e. NEuTRAL or STRENGTHEN. A strengthening option is better.. isn't it?
Dawg, You said: "(E) The unit sale price of Elavil is higher than that of Prozac. Could increase Elavils sales, since it is cheaper"
The unit price of Elavil is higher. so how does that make it cheaper?
Edited/Corrected: The higher sales price could increase the revenues of the old drug, Elavil.
Discuss.
But we do not know how many units Elavil or Prozac sold. So we can't use this option.
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You could say the same for choice B, those 6 banned states could account for nothing, you don't know that. I'm eliminating choices that could potentially weaken the conclusion.
Yup. So if Prozac has the same benefits as Elavil and fewer side effects and on top of this Prozac is cheaper. Guess what... people are going to go for Prozac. This is the one that not weakens but STRENGTHENS the argument and hence should be the answer. We are asked to which of these option do the opposite of weaken i.e. NEuTRAL or STRENGTHEN. A strengthening option is better.. isn't it?
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You are confusing sales volume and revenue. Revenue = sales volume * sales price.
You are confusing sales volume and revenue. Revenue = sales volume * sales price.
No, I am not. Will try and explain. Lets say volume was 100 units before prozac came into the market. And lets say Elavil's unit price is 10$. So its revenue is 1000$.
After prozac comes in the volume of elavil sold goes down..so naturally the revenue goes down.
You are confusing sales volume and revenue. Revenue = sales volume * sales price.
No, I am not. Will try and explain. Lets say volume was 100 units before prozac came into the market. And lets say Elavil's unit price is 10$. So its revenue is 1000$.
After prozac comes in the volume of elavil sold goes down..so naturally the revenue goes down.
Am I making sense?
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Yes the sales volume will go down, but factor in the sales price. Compare that with the revenue of the new drug. The conclusion is saying:
Thus, revenue from the sale of the new drug is going to far exceed the revenue from the sale of the old drug.
Even if sales volume went down by some X (we don't know exact figures), if the sales price is higher for Elavil this could weaken the argument that the new drug will FAR EXCEED the revenues of the old drug. The higher sales price could compensate for it's lower sales volume.
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