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The price of flat-screen monitors will most likely increase in the nex

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The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post Updated on: 06 Aug 2019, 15:40
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  65% (hard)

Question Stats:

53% (01:45) correct 47% (01:57) wrong based on 99 sessions

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The price of flat-screen monitors will most likely increase in the next year. This is due to the current acute shortage of certain key materials used in the manufacture of display panels, which, in turn, has driven upward the market price of those same panels.

The answer to which of the following questions would provide information relevant to evaluating the argument above?

A. Will the material shortage abate in the next few years?

B. Have display panel prices remained steady at other times of material shortage?

C.Will consumers be inclined to pay more for flat-panel displays?

D. Was there a recent decline in the price of flat-panel monitor components other than display panels?

E. What fraction of display panel manufacturers has been affected by the material shortage?


Can anyone please explain to me why the answer to this question is NOT
E
ORIGINAL EXPLAINATION for E:
(E) is also irrelevant. It doesn’t matter whether the fraction of affected manufacturers is small or large, because whatever that fraction is, it’s apparently enough to drive up the price of the display panels. -> How do we know this? The passage mentions MOST LIKELY. It can still be challenged right? It's not a fact that is given in the argument. It's just a possibility.
?

Originally posted by rish2708 on 06 Aug 2019, 11:24.
Last edited by Bunuel on 06 Aug 2019, 15:40, edited 1 time in total.
Renamed the topic.
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Re: The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post 06 Aug 2019, 11:40
We need to evaluate if the prices of display panel will rise.
As per the premise price of certain key materials has increased due to it's shortage.

Evaluating the options

A) Doesn't matter as what happens after few years. Next year tgere can still be rise so insufficient

B) This doesn't say that during such shortage wether there was rise in price of materials - Hence, Incorrect

C) This is completely irrelevant

D) If there is decline in other components for the monitors then that will be important in determining whether there will be a rise in price. If the price of key material is up by $10 and other components decrease by $20 there are chances of the price to remain constant or even decrease. - so correct

E) Even if a small fraction of manufacturer are affected it will drive up the price.

You have to find the option which can surely challenge and D is the best.

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Re: The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post 06 Aug 2019, 13:47
rish2708 wrote:
The price of flat-screen monitors will most likely increase in the next year. This is due to the current acute shortage of certain key materials used in the manufacture of display panels, which, in turn, has driven upward the market price of those same panels.

The answer to which of the following questions would provide information relevant to evaluating the argument above?

A. Will the material shortage abate in the next few years?

B. Have display panel prices remained steady at other times of material shortage?

C.Will consumers be inclined to pay more for flat-panel displays?

D. Was there a recent decline in the price of flat-panel monitor components other than display panels?

E. What fraction of display panel manufacturers has been affected by the material shortage?


Can anyone please explain to me why the answer to this question is NOT
E
ORIGINAL EXPLAINATION for E:
(E) is also irrelevant. It doesn’t matter whether the fraction of affected manufacturers is small or large, because whatever that fraction is, it’s apparently enough to drive up the price of the display panels. -> How do we know this? The passage mentions MOST LIKELY. It can still be challenged right? It's not a fact that is given in the argument. It's just a possibility.
?



The problem with [spoiler=]E is that it talks about the effect on display panel manufacturers and has nothing to do with flat screen displays. Just because large %age of display panel manufacturers are affected doesnt mean that the price of display panel will increase.

D on the other hand is better. If prices of other components go down then price of flat screen may stay stable or not go up.

Hope it helps! Kudos :)
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Re: The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post 06 Aug 2019, 19:42
i think E is not appropriately written...as even if price of component decrease there might be a chance that it will compensate or not..... even if it decrease we are not sure that it will compensate that one... so this one extreme is not sufficient....Please correct me if i am wrong?
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Re: The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post 06 Aug 2019, 20:13
jrk23 wrote:
i think E is not appropriately written...as even if price of component decrease there might be a chance that it will compensate or not..... even if it decrease we are not sure that it will compensate that one... so this one extreme is not sufficient....Please correct me if i am wrong?



I think you mean D right?

Yes in D we don't know whether it would compensate for the high prices. This was a reason not to select D.

E on the other hand states that the proportion of manufacturers of the screen component is too low/high who have been affected. I thought E to be stronger than D because if the proportion of such manufacturers is low then the prices might not be that high next year and if proportion is high then we know that the price increase is very likely.


Wording of the Question is as it is I got on Kaplan free practice test.

Regards,
Rishav

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Re: The price of flat-screen monitors will most likely increase in the nex  [#permalink]

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New post 06 Aug 2019, 20:18
Anki2609 wrote:
We need to evaluate if the prices of display panel will rise.
As per the premise price of certain key materials has increased due to it's shortage.

Evaluating the options

A) Doesn't matter as what happens after few years. Next year tgere can still be rise so insufficient

B) This doesn't say that during such shortage wether there was rise in price of materials - Hence, Incorrect

C) This is completely irrelevant

D) If there is decline in other components for the monitors then that will be important in determining whether there will be a rise in price. If the price of key material is up by $10 and other components decrease by $20 there are chances of the price to remain constant or even decrease. - so correct

E) Even if a small fraction of manufacturer are affected it will drive up the price.

You have to find the option which can surely challenge and D is the best.

Posted from my mobile device


Isn't the assumption that the prices of other things would compensate a far stretched assumption? I can't say that this will SURELY challenge the price increase

For option E on the other hand, although the argument says that there is acute shortage but if that shortage is LIMITED to say 2-4 manufacturers then we know from here that others might still be able to produce it at competitively low costs.

On the other hand if the proportion is too high it will be opposite. So it gives me the believes in both ways.


How we counter this?

Regards,
Rishav
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Re: The price of flat-screen monitors will most likely increase in the nex   [#permalink] 06 Aug 2019, 20:18
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