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B
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Difficulty:
25%
(medium)
Question Stats:
79% (01:51) correct
21%
(02:22)
wrong
based on 1469
sessions
History
Date
Time
Result
Not Attempted Yet
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.
Which of the following is an assumption made in drawing the conclusion above?
A. The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
B. Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
C. De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
D. De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
E. The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
Which of the following is an assumption made in drawing the conclusion above?
A. The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
B. Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.
C. De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
D. De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
E. The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
plumber250
Joined: 07 Nov 2012
Last visit: 21 Dec 2015
Posts: 213
Given Kudos: 4
Schools: LBS '14 (A$)
GMAT 1: 770 Q48 V48
20 Nov 2012, 02:33
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Hi McFauz, Agree with you. I don't see this as a 700 Level question, but here is the logic for Marcab.....
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.
So argument is that because John de los Santos made more profit per pair of shoes with his limited editions he should increase the quantity he makes of these limited edition ones to increase his profit
Which of the following is an assumption made in drawing the conclusion above?
So what is assumed in making this conclusion. In other words what else could we need to know to make the conclusion solid.
a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.No we do not need to know this. This is about the % of de los Santos' product, the competitors are not relevant.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.Looks good. We do need to know this. If we reduce scarcity, we normally see price drop - but if that does not happen here then the argument is strong.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles. Nope. This would actually weaken the argument. We want more people to want bold styles for it to be true
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him. Nope. Competitors again are irrelevant here.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.Nope. Interesting perhaps, but not an assumption in the argument
So overall relatively easy. As you read the passage, the assumption is actually relatively clear. Basic knowledge dictates that a 'special edition' becomes less 'special' if lots are made, so we should always be looking out for something around that. And we find that in B
Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.
So argument is that because John de los Santos made more profit per pair of shoes with his limited editions he should increase the quantity he makes of these limited edition ones to increase his profit
Which of the following is an assumption made in drawing the conclusion above?
So what is assumed in making this conclusion. In other words what else could we need to know to make the conclusion solid.
a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.No we do not need to know this. This is about the % of de los Santos' product, the competitors are not relevant.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of those sneakers.Looks good. We do need to know this. If we reduce scarcity, we normally see price drop - but if that does not happen here then the argument is strong.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles. Nope. This would actually weaken the argument. We want more people to want bold styles for it to be true
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him. Nope. Competitors again are irrelevant here.
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.Nope. Interesting perhaps, but not an assumption in the argument
So overall relatively easy. As you read the passage, the assumption is actually relatively clear. Basic knowledge dictates that a 'special edition' becomes less 'special' if lots are made, so we should always be looking out for something around that. And we find that in B
General Discussion
19 Nov 2012, 10:21
Kudos
Bookmarks
Answer should be B... I think quite straightforward... Can get a hint of what the answer would be while reading the question itself... IMHO not a 700 level question.. Ofcourse this would all blow up in my face if i were wrong... 
Kudos Please... If my post helped.
Kudos Please... If my post helped.
