Tough GMAT PREP CR

Question

hi,
Can someoen at GMATclub please expalain one CR questions from official GMAT prep test.
Thanks.

gmat1220 · Answer

I think B is 180 deg wrong choice.

Conclusion : per capita expenditure on the prescrption drug continued to go up inspite of the deterring legislation. Hence there are 2 cases - population is decreasing or the drug company has started on a new project that involved cheaper prescription alternatives. Since B is gone. A is the answer by POE.

C - Explains the sustainability of profits but does not explain the per capita increase in expenditure of the pres drug
D - Irrelevant - "generic drug"
E - Irrrelevant - "foreign manufacturer"

bellcurve · Answer

None of the choices makes sense. What is the OA? Since government froze ANY of their products' prices "new medications to replace existing products" should also come under the definition "ANY."

naveenhv · Answer

I remember this question from the GMAT Prep. I have selected A and A was correct. The Govt put price controls on some expensive drugs. But the Drug companies released a new drug and priced it a the same level or even higher, than the previously controlled drug. So the per capita expenditure increased even though the 'some' drugs were controlled.

Edit: I feel its better you type out the question, instead of attaching a doc file. Its easier to read when typed out here.

Edit: I feel its better you type out the question, instead of attaching a doc file. Its easier to read when typed out here.

intcan · Answer

A. Drug Manufacturers can charge higher prices for the new medicines and the per-capita expenditure can still increase.

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