The Vice President of a grocery chain released the following statement

1. i. Weaken ii. Not Weaken iii. Not Weaken
2. i. No ii. No iii. Yes
3. B. 16/25

Let vegetable wholesale prices in the year 1990 be 200, so vegetable price will follows as below

Price in 1985 100
Price in 1990 200
Price in 1995 255
Price in 2000 325
From 1990 to 2000 there is an increase of 5% every year.

q.1 The grocery chain's wholesale costs are currently well above market value.
As 325 (price wholesale in 2000) is greater than market price (300) for price in 2000. This will weaken the argument.
The market price of wholesale groceries will not decrease at some point during the next ten years. May or may not be true, but if it's true it will strengthen hence it will not weaken the claim.
The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. The consistency is not maintained as one is moving in simple interest one in compound interest, hence weaken the argument

Q.2
In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. True

For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. False, as total increase for 5 year is 25% which is less than 5% increase in each year as compound interest is greater than simple interest.

From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.This may or may not be true, hence false.

q.3 using the above data we get 200/300 so ratio will be 2/3.
Price in 1990 200
Price in 1992 250
Price in 2000 300
_________________

Given,
TAB 1
prices from wholesale suppliers increase sharply. current wholesale prices = double the price of five years ago price. New agreement with suppliers. For 1990-2000, suppliers will only increase prices by 5% per year.
TAB 2
In 1995, wholesale price increased by 25% of what it had been in 1990.
In 2000, wholesale price increased by an additional 25% from what it had been in 1995.
From 1995 to 2000, the market wholesale price increased by the same percent each year.

Q Weaken / Not Weaken the Conclusion: "this agreement will ensure that, in the long term, our wholesale costs will stay below market price"

1a) The grocery chain's wholesale costs are currently well above market value. (even considering - In 1990, WP=100, MP=99- shows that WP(162 in 2000) will be > MP (154 in 2000)) Not Weaken

1b) The market price of wholesale groceries will not decrease at some point during the next ten years. (MP after continuous increase or stagnation for some years depends hugely on initial value of MP. But probably 'no decrease' will only weaken the director's claim. Weaken

1c) The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. (As per Tab 1, this already seems to be known to the director while he made the claim) Not Weaken


Q Does the information provided support the inference as stated?

2a) In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. They actually paid 27.6% more, Hence NO

2b) For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.No info about increase. decrease of MP given, hence can't be inferred. NO

2c) From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. The actual price change is 10.25%, Hence YES

Q3) The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?

A3) the market price of groceries in 1990 = 100 (assume)
Then, the market price of groceries in 2000 = 156.25 {(100*1.25)*1.25}
So ratio, 100/156.25 = 0.64 = 16/25
Option B

1. For each of the following statements, select Weaken if the statement would weaken the claim in the Vice President's proposal. Otherwise select Not Weaken.


A. The grocery chain's wholesale costs are currently well above market value.
[Weaken]
This statement is weakening the fact that the raise in the supplier cost by 5% over already high prices may lead to the whole sale price to be more than the market price in long run.

B. The market price of wholesale groceries will not decrease at some point during the next ten years.
[Not Weaken]
Strengthening the claim of the VP as it shows that the overall increase of the wholesale price is inevitable.

C. The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products.
[Not Weaken]
Again strengthening the claim of the VP as it shows that the overall increase of the wholesale price is inevitable.

2. Consider each of the following statements. Does the information provided support the inference as stated?

A. In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990.
IMO Yes
Because from 1990 each year the price increased by 5% as per the new agreement and the overall % is around 27%

B. For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%.
IMO No
The overall increase is given as 25%. Can't really say about the each year's increase.

C. From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%.
IMO Yes

In 1991 - Grocery chain paid 5% more
In 1992 - Again paid 5% more
Overall increase - 10.25%

3. The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?

IMO B

Lets Say In 1990 the market price is - x
In 1995 increased by 25% - 5/4 x
In 2000 again increased by 25% as compared to 1995 - (5/4) (5/4) x = 25/16 x

The ratio is - x/(25/16)x = 16/25 = B

ANSWERS :
W- WEAKEN NW- NOT WEAKEN
1. W, NW, NW
2. YES, NO, NO
3. B

QUESTION 1: For each of the following statements, select Weaken if the statement would weaken the claim in the Vice President's proposal. Otherwise select Not Weaken.

Since this is Critical Reasoning question, Let’s Map out the Conclusion and Premises.

P1 :In recent years, we've seen the prices from our wholesale suppliers increase sharply.
P2 :The current wholesale prices we pay per ounce for vegetables, for instance, is double the price per ounce we paid five years ago.
P3 :We are proud to announce that we have reached a new agreement with our suppliers to keep this price increase under control.
P4 :Over the next ten years, our suppliers will only increase prices by 5% per year.

CONCLUSION/ CLAIM:Thus, this agreement will ensure that, in the long term, our wholesale costs will stay below market price.

The VICE PRESIDENT assumes that the WHOLESALE PRICES will remain under MARKET PRICES due to the price increase being kept under control by their suppliers (5% increase)

A weakening statement will throw this assumption to question.

A. The grocery chain's wholesale costs are currently well above market value. W

If this is true and the MARKET PRICES are higher to begin with, then the WHOLESALE price increase being kept under control will not ensure that the WHOLESALE PRICES stay under the MARKET PRICES.

If the market prices stay stagnant, the wholesale prices will only keep increases.
If the markets increase alongside the wholesales at a similar rate, the market price will remain lower than wholesale price.

The only case where this wouldn’t weaken the argument would be if the market prices plummet to the wholesale values and decrease. However we have no information about the rate of change of market prices. Also we have two instances where the WHOLESALE prices don’t stay under market prices.

Therefore this is the WEAKENER choice.


B. The market price of wholesale groceries will not decrease at some point during the next ten years. NW

This doesn’t weaken the answer at all. If the market price won’t decrease at some point, then (given that the market price is higher than current wholesale value), the price increase limitations by the suppliers will ensure that the wholesale prices stays under market prices. This is actually a STRENGTHENING CHOICE

C. The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. NW

This neither weakens nor strengthens the conclusion. In fact it has not effect on the conclusion because it doesn’t relative market and wholesale prices at all. How wholesale prices of vegetables and wholesale prices of other grocery products relate is IRRELEVANT to the argument.



QUESTION 2. Consider each of the following statements. Does the information provided support the inference as stated?

In an inference question, everything stated in the passage/stem is taken as true/fact. Therefore the correct answer choices MUST BE TRUE. Any MAYBE’s or FALSE’s must be marked wrong.

In 1995, the market wholesale price of all grocery products had increased by 25% from what it had been in 1990. In 2000, market wholesale price had increased by an additional 25% from what it had been in 1995. From 1995 to 2000, the market wholesale price increased by the same percent each year.

A. In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. YES

YES, given TAB 2, It is clearly stated that prices of 1995 were 25% more than prices of 1990.


B. For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. NO

“From 1995 to 2000, the market wholesale price increased by the same percent each year.”

We know that prices of 2000 = 125% of prices of 1995

We also know that for each year from 1995 - 2000 the prices increased by the same percent each year.

If the prices of 1995 is taken a 100$ then we know that the price of 2000 is 125$

If the prices increased by 5% each year from 1995 - 2000 the price changes would be

100$
105$,
110.25$
115.7625$
121.550625$
127.628156$ ==> the final price of 2000 which is NOT 125$

This is not an inference supported by the the passage.

C. From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. NO

All we know is that from 1990 to 1995 there was a 25% increase. We do not know whether the percentage increase per year was the same amount or whether the jump to 25% happened over the five years or just in the last interval. This is Beyond the scope of the passage and hence cannot be inferred logically.



QUESTION 3. The market price of groceries in 1990 was what fractional part of the market price of groceries in 2000?

STRAIGHT UP PROBLEM SOLVING

$(YEAR 2000) = 125% of 125% of $(YEAR 1990)
($(YEAR 2000)*100*100) / (125*125) = $(YEAR 1990)

[$(YEAR 2000)] * (16/25) = $(YEAR 1990)

A. 1/2
B. 16/25 CORRECT
C. 2/3

D. 3/2

E. 5/4

Question 1:

1. The grocery chain's wholesale costs are currently well above market value. (if the wholesale price is already above the market price and the next 5% increase will be there for the next 10 years, the cost will be over the market price, hence this weakens the vice president's claim) (Weaken)

2. The market price of wholesale groceries will not decrease at some point during the next ten years. (According to VP plan of keeping the price under control, if the price of the wholesale vegetables don't decrease, the price will fluctuate as per the plan of VP) (Not Weaken)

3. The rate of increase in the wholesale costs of vegetables is consistent with the average rate of increase in wholesale costs for all grocery products. (if the increase in price is consistent, and the VP's plan of increasing the price of vegetables stays intact, VP's plan will eventually keep the price under control) (Not Weaken)

Question 2:

1. In 1995, the grocery store chain paid 25% more for wholesale groceries than it did in 1990. (True, it is given in the statement, "In 1995, the market wholesale price of all grocery products had increased by 25% from what it had been in 1990.")

2. For each year from 1990 to 1995, the wholesale market price of groceries increased by 5%. (False, No given information testifies this)

3. From 1990 to 1992, the prices the grocery chain paid for wholesale groceries increased by more than 10%. (False, No given information testifies this)

Question 3:
Let the price be 100 in 1990
Change in price from 1990 to 1995 = 25%
Change in price from 1995 to 2000 = 25%
Price in 2000 = 156.25
Therefore,
The ratio will be 100/156.25 = 16/25
Answer is B
_________________

OAs of this question are:

Question #1

Weaken, Not Weaken and Not Weaken.

Question #2

No, No and Yes

Question #3

B

Everyone got 2 correct out of three. OE to follow.

Good luck with the last day questions. Winners will be announced on Sunday.