Tough GMAT PREP CR : GMAT Critical Reasoning (CR)
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# Tough GMAT PREP CR

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Intern
Joined: 10 Sep 2009
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03 Feb 2011, 05:00
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Question Stats:

100% (01:35) correct 0% (00:00) wrong based on 5 sessions

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hi,
Can someoen at GMATclub please expalain one CR questions from official GMAT prep test.
Thanks.
[Reveal] Spoiler: OA

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GMAT Prep_CR.doc [88 KiB]

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Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 03 Feb 2011
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Re: Tough GMAT PREP CR [#permalink]

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03 Feb 2011, 05:14
mydreambschool wrote:
hi,
Can someoen at GMATclub please expalain one CR questions from official GMAT prep test.
Thanks.

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"
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Re: Tough GMAT PREP CR [#permalink]

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03 Feb 2011, 15:10
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."
Manager
Joined: 14 Dec 2010
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Concentration: Technology, Entrepreneurship
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Re: Tough GMAT PREP CR [#permalink]

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03 Feb 2011, 22:41
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.
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Re: Tough GMAT PREP CR [#permalink]

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06 Feb 2011, 14:01
A. Drug Manufacturers can charge higher prices for the new medicines and the per-capita expenditure can still increase.
Re: Tough GMAT PREP CR   [#permalink] 06 Feb 2011, 14:01
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