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Till last year in the country of Scavengia, a nation with falling

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Till last year in the country of Scavengia, a nation with falling [#permalink]

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New post 23 Sep 2017, 00:40
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Difficulty:

  75% (hard)

Question Stats:

55% (02:24) correct 45% (01:56) wrong based on 220 sessions

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Till last year in the country of Scavengia, a nation with falling birth rates, every 5% rise in condom prices has decreased per capita sales of condoms by five percent. Scavengia is about to raise taxes on condoms by 5 cents per pack. The average price of condoms in Scavengia is and has been for more than a year 50 cents per pack. So the tax hike stands an excellent chance of reducing per capita sales of condoms by five percent.

Which of the following is an assumption on which the argument depends?

A. Any decrease in per capita sales of condoms in Scavengia will result mainly from an increase in the number of people who are past the reproductive age.
B. At present, the price of a pack of condoms in Scavengia includes taxes that amount to less than ten percent of the total selling price.
C. Condom companies are unlikely to reduce their profit per pack of condoms to avoid an increase in the cost per pack to consumers in Scavengia.
D. The number of people in Scavengia who use condoms has remained relatively constant for the past several years.
E. Previous increases in condom prices in Scavengia have generally been due to increases in taxes on condoms.
[Reveal] Spoiler: OA

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Re: Till last year in the country of Scavengia, a nation with falling [#permalink]

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New post 22 Dec 2017, 07:15
Hello Experts,

Can you please provide a reason why the OA is C?
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Re: Till last year in the country of Scavengia, a nation with falling [#permalink]

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New post 05 Jan 2018, 13:44
i was confused between C and D but i guess per capita means per head. so the population changing or remaining constant should not matter. hence eliminated D
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Re: Till last year in the country of Scavengia, a nation with falling [#permalink]

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New post 05 Jan 2018, 16:14
rohan2345 wrote:
Till last year in the country of Scavengia, a nation with falling birth rates, every 5% rise in condom prices has decreased per capita sales of condoms by five percent. Scavengia is about to raise taxes on condoms by 5 cents per pack. The average price of condoms in Scavengia is and has been for more than a year 50 cents per pack. So the tax hike stands an excellent chance of reducing per capita sales of condoms by five percent.

Which of the following is an assumption on which the argument depends?

A. Any decrease in per capita sales of condoms in Scavengia will result mainly from an increase in the number of people who are past the reproductive age.
B. At present, the price of a pack of condoms in Scavengia includes taxes that amount to less than ten percent of the total selling price.
C. Condom companies are unlikely to reduce their profit per pack of condoms to avoid an increase in the cost per pack to consumers in Scavengia.
D. The number of people in Scavengia who use condoms has remained relatively constant for the past several years.
E. Previous increases in condom prices in Scavengia have generally been due to increases in taxes on condoms.


In Stem, it says that tax hike will result in increased condom prices and in turn, reduced per capita condom sales.

Option A - No mention of age - so out of scope
Option B - Not relevant as we are talking about increase in tax on top of existing cost - Eliminate
Option C - Correct answer. If tax hike doesn't result in increased cost, given argument is no more valid.
Option D - Stem talks about per capita usages so nothing to do with the number of people using condoms. No information about cost and usage trends provided.
Option E - This statement doesn't add any relevant information except saying that condom companies haven't increased cost without tax hikes.
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Re: Till last year in the country of Scavengia, a nation with falling   [#permalink] 05 Jan 2018, 16:14
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Till last year in the country of Scavengia, a nation with falling

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