Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 25 Mar 2017, 06:49

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The supply of iron ore, the most important component in

Author Message
TAGS:

### Hide Tags

Moderator
Joined: 01 Sep 2010
Posts: 3149
Followers: 821

Kudos [?]: 6922 [1] , given: 1051

The supply of iron ore, the most important component in [#permalink]

### Show Tags

02 Apr 2013, 10:42
1
KUDOS
1
This post was
BOOKMARKED
00:00

Difficulty:

25% (medium)

Question Stats:

74% (02:32) correct 26% (01:49) wrong based on 287 sessions

### HideShow timer Statistics

The supply of iron ore, the most important component in steelmaking, has been steadily declining
in Marco city. This has forced steel manufacturing units in Marco city to source iron ore from far
off mines leading to an increase in their transportation costs. Because transportation costs make
up a large chunk of the total cost of steelmaking, the steel manufacturers in Marco city have had
no option but to increase the selling price of their steel. This has in turn led to an increase in the
retail price of utensils and other articles of daily use made of steel. Since the retail consumers now
have to pay more for these steel items, while their earnings remain unchanged, they have decided
to cut down on their non essential expenditure such as that on movie tickets. This has led movie
theatres in Marco city to reduce their ticket prices.

Which of the following provides the most support for the assertion that the prices of movie tickets
in Marco city will continue to decline in future?

(A) The people of Marco city will not be willing to cut down their expenditure on eating out

(B) After the inauguration of the Goldport Bridge, expected to happen very soon, the transportation costs to Marco city will be halved

(C) There are no blockbuster movies with stellar star casts lined up for release anytime soon

(D) The supply of iron ore to Marco city is expected to go down even more in the near future

(E) Residents of Marco city view movie tickets as non essential items of expenditure
[Reveal] Spoiler: OA

_________________
If you have any questions
New!
Intern
Joined: 18 Feb 2013
Posts: 32
GMAT 1: 710 Q49 V38
Followers: 0

Kudos [?]: 30 [0], given: 14

Re: The supply of iron ore, the most important component in stee [#permalink]

### Show Tags

02 Apr 2013, 18:18
Supply of iron ore decreases-->transportation cost increases-->retail of steel items increases-->since earning remains unchanged, consumers purchase of movie tickets decreases-->ticket prices decreases.
(A) The people of Marco city will not be willing to cut down their expenditure on eating out doesn't explain why ticket prices will continue to decrease in the future

(B) After the inauguration of the Goldport Bridge, expected to happen very soon, the transportation costs to Marco city will be halved if transportation cost decreases, the ticket prices might increase.

(C) There are no blockbuster movies with stellar star casts lined up for release anytime soon out of scope

(D) The supply of iron ore to Marco city is expected to go down even more in the near future yes. the reason why movie tickets decrease in the first place was because of the decrease in iron ore supply.

(E) Residents of Marco city view movie tickets as non essential items of expenditure stated but does not answer the question
Director
Joined: 05 Sep 2010
Posts: 853
Followers: 89

Kudos [?]: 255 [0], given: 61

Re: The supply of iron ore, the most important component in stee [#permalink]

### Show Tags

02 Apr 2013, 20:00
has to be D :The supply of iron ore to Marco city is expected to go down even more in the near future
Intern
Joined: 01 Apr 2013
Posts: 23
Followers: 0

Kudos [?]: 51 [0], given: 9

Re: The supply of iron ore, the most important component in stee [#permalink]

### Show Tags

03 Apr 2013, 08:35
The stem links the MT price reduction to the Iron price~supply.

We are asked then to justify the extension of this phenomenon in the future.

Only D can clearly justify that.
_________________

Manager
Joined: 10 Jan 2010
Posts: 81
Schools: IIM
Followers: 0

Kudos [?]: 26 [0], given: 11

Re: The supply of iron ore, the most important component in stee [#permalink]

### Show Tags

03 Apr 2013, 09:36
Yes D is clearly the strengthener.

I opted D. Pl provide OA.
Moderator
Joined: 01 Sep 2010
Posts: 3149
Followers: 821

Kudos [?]: 6922 [0], given: 1051

Re: The supply of iron ore, the most important component in stee [#permalink]

### Show Tags

03 Apr 2013, 13:19

Thanks for discussion
_________________
Manager
Joined: 22 Aug 2013
Posts: 113
Schools: ISB '15
Followers: 2

Kudos [?]: 30 [0], given: 60

Re: The supply of iron ore, the most important component in [#permalink]

### Show Tags

22 Dec 2013, 12:27
carcass wrote:
The supply of iron ore, the most important component in steelmaking, has been steadily declining
in Marco city. This has forced steel manufacturing units in Marco city to source iron ore from far
off mines leading to an increase in their transportation costs. Because transportation costs make
up a large chunk of the total cost of steelmaking, the steel manufacturers in Marco city have had
no option but to increase the selling price of their steel. This has in turn led to an increase in the
retail price of utensils and other articles of daily use made of steel. Since the retail consumers now
have to pay more for these steel items, while their earnings remain unchanged, they have decided
to cut down on their non essential expenditure such as that on movie tickets. This has led movie
theatres in Marco city to reduce their ticket prices.

Which of the following provides the most support for the assertion that the prices of movie tickets
in Marco city will continue to decline in future?

(A) The people of Marco city will not be willing to cut down their expenditure on eating out

(B) After the inauguration of the Goldport Bridge, expected to happen very soon, the transportation costs to Marco city will be halved

(C) There are no blockbuster movies with stellar star casts lined up for release anytime soon

(D) The supply of iron ore to Marco city is expected to go down even more in the near future

(E) Residents of Marco city view movie tickets as non essential items of expenditure

Why not A, if people opt to cut down on their expenditure on eating out, then the ticket sale would remain same, even if the steel prices go down further.
_________________

Veritas Prep - 650
MGMAT 1 590
MGMAT 2 640 (V48/Q31)

Senior Manager
Joined: 07 Nov 2012
Posts: 344
Schools: LBS '14 (A)
GMAT 1: 770 Q48 V48
Followers: 193

Kudos [?]: 374 [0], given: 4

Re: The supply of iron ore, the most important component in [#permalink]

### Show Tags

22 Dec 2013, 14:59
Hi Seabhi,

Let me see if I can help.

In my opinion you've got to be careful with nagation type reasoning. Just because you can flip something around doesn't mean you should.

The question is looking for a reason WHY something might happen, i.e. something to support it.

A gives no reason WHY, it gives us a random piece of information. It gives no reason why something will change in the future.

Look at C, it clearly does this. The whole article is about the link between cinema and ore prices.

james
_________________

Former GMAT Pill student, now on staff. Used GMATPILL OG 12 and nothing else: 770 (48,48) & 6.0

... and more

Intern
Joined: 06 Jan 2013
Posts: 24
GPA: 3
WE: Engineering (Transportation)
Followers: 0

Kudos [?]: 58 [0], given: 9

Re: The supply of iron ore, the most important component in [#permalink]

### Show Tags

24 Dec 2013, 09:08
I somehow don't feel convinced with the OA of this question.
D) does give us a reason to believe that ticket prices would continue to decline but C) does that to a greater degree. Let us examine answer choices C) and D) only.
C) says that there are no blockbuster movies with stellar star casts lined up for release anytime soon. So in the near future most people might not want to spend their money on movies that are not extraordinary. If this happens the movie theaters will have to further decrease the ticket prices to attract audience.
D) says that the supply of iron ore to Marco city is expected to go down even more in the near future. Obviously then the retail prices of essential objects made of steel would increase. Hence most people would try to decrease their expenses on non-essential items. Now there might be so many other non-essential items. Probability of decrease of ticket prices is there as well. But what if the decrease of expenditure on other non-essential items are more than that of movie tickets. What if the expenditure on movie tickets undergoes significantly less or almost negligible decline? This option does work a bit but I feel that option C) works better.
Hence I will pick C)
_________________

If you shut your door to all errors, truth will be shut out.

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10668
Followers: 957

Kudos [?]: 213 [0], given: 0

Re: The supply of iron ore, the most important component in [#permalink]

### Show Tags

30 Apr 2015, 08:24
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: The supply of iron ore, the most important component in   [#permalink] 30 Apr 2015, 08:24
Similar topics Replies Last post
Similar
Topics:
2 Due to oxidation, the iron components 3 03 May 2015, 16:15
9 Iron ore mines in Triberia have demonstrated that upgraded 5 02 Nov 2012, 23:13
18 The most important aspect of moviemaking is conveying a 46 17 Feb 2009, 22:09
58 Most of the world's supply of uranium currently comes from 34 17 Jun 2008, 11:38
The most important aspect of moviemaking is conveying a 13 21 Nov 2007, 12:55
Display posts from previous: Sort by