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

Question

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.  ?

Anki2609 · Answer

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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prateeksab · Answer

The problem with 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

jrk23 · Answer

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?

rish2708 · Answer

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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rish2708 · Answer

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

gmat1393 · Answer

KAPLAN OFFICIAL EXPLANATION

Identify the Question Type:

The word “evaluating” signals the rare Evaluation question type. Evaluation questions are a spin on the more common Assumption questions: the task is to select the choice that will confirm or deny a central assumption in the argument.

Untangle the Stimulus:

The phrase “this is due to” introduces evidence, so the preceding sentence must be the conclusion: the author thinks that flat-screen monitors will get more expensive next year. The evidence is that the monitors’ display panels have gotten more expensive.

Predict an Answer:

The argument features a sharp scope shift: from “display panels” in the evidence to “flat-screen monitors” in the conclusion. The author has to take for granted, then, that the cost of display panels is the main factor in determining the cost of flat-screen monitors. The prediction is that the correct choice will ask whether or not this is the case.

Evaluate the Choices:

(D) matches the prediction perfectly. If other components have gotten cheaper, then the cost of the monitors might stay steady or even decrease. By contrast, if display panels are the only components that have changed in price, then the author’s claim that flat-screen monitors’ prices will go up is probably right.

(A) is tempting but irrelevant. If display prices stay high, the author's argument holds. However, even if display panels did drop back in price in a few years, that would probably be too late to affect the author's argument, which concerns the price of monitors "in the next year." The author would still have a valid argument.

(B) is an irrelevant comparison. Display panels are definitely more expensive now; whether or not they were at other times has no bearing on the argument. It may be relevant whether monitor prices have stayed the same during times of material shortage, but that's not the question being asked here.

(C) is another tempting distraction. What’s under question is whether the price of certain monitors will go up; whether consumers will buy the monitors is beside the point.

(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.

TAKEAWAY: When an author uses evidence about one concept to make a conclusion about another concept, the assumption has to link those two concepts together somehow.

SairamRamo · Answer

Let's evaluate each answer choice

A. Will the material shortage abate in the next few years? 
If the above statement is Yes - If shortage abates in the next few years, the prices might come to normal in the next few years. But it doesn't say anything about next year
If the above statement is NO - If shortage continues, the price might continue to increase

Eliminate A

B. Have display panel prices remained steady at other times of material shortage? 
If the above statement is Yes - If the prices have remained steady during material shortage at some other time, it doesn't give any evidence that it could remain steady in the current scenario 
If the above statement is NO - If the prices haven't remained steady during material shortage at some other time, it doesn't give any evidence that it wouldn't/would remain steady in the current scenario

Eliminate B

C.Will consumers be inclined to pay more for flat-panel displays? 
If the above statement is Yes - Consumers inclination to pay more as no correlation with the increase in price as stated in the argument 
If the above statement is NO - Consumers inclination to not to pay more as no correlation with the increase in price as stated in the argument

Eliminate C

D. Was there a recent decline in the price of flat-panel monitor components other than display panels? 
If the above statement is Yes - If there is a decline, we are not sure whether the decline in the overall price of other components could compensate for the increase in the price of the display panel, 
If the above statement is NO - If there is no decline, most likely the overall price might increase due to the increase in display panels price

Although D satisfies if the statement is NO, let look at last option if it turns out to be better than D

E. What fraction of display panel manufacturers have been affected by the material shortage? 
If the above statement is Yes - If a huge number of manufacturers are effected, the overall supply could also be affected which might increase the panels price
If the above statement is NO - If only a few numbers of manufacturers are effected, the overall supply might not be disrupted, so price might not increase

Compared to D, E is more stronger

IMO its E

VerbalBot · Answer

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

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