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# Unlike the wholesale price of raw wool, the wholesale price

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Director
Joined: 04 Oct 2005
Posts: 582
Location: Chicago
Unlike the wholesale price of raw wool, the wholesale price [#permalink]

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24 Jan 2006, 19:33
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Unlike the wholesale price of raw wool, the wholesale price of raw cotton has fallen considerably in the last year. Thus, although the retail price of cotton clothing at retail clothing stores has not yet fallen, it will inevitably fall.
Which of the following, if true, most seriously weakens the argument above?
(A) The cost of processing raw cotton for cloth has increased during the last year.
(B) The wholesale price of raw wool is typically higher than that of the same volume of raw cotton.
(C) The operating costs of the average retail clothing store have remained constant during the last year.
(D) Changes in retail prices always lag behind changes in wholesale prices.
(E) The cost of harvesting raw cotton has increased in the last year.
VP
Joined: 21 Sep 2003
Posts: 1057
Location: USA

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24 Jan 2006, 21:00
A?

If processing costs are higher then despite the fall in price of the raw cotton the retail price may not fall.
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Joined: 20 Nov 2005
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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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25 Jan 2006, 01:29
Straight A.

Only way (from the choices) that price ofo cotton cloths at retails stores will not fall,despite fall in raw cotton prices, is if operating cost of retail stores increases.
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Manager
Joined: 13 Dec 2005
Posts: 224
Location: Milwaukee,WI

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25 Jan 2006, 13:48
Ans A . The increase in cost of processing raw cotton will nullify the decrease in the cost of whole sale price of raw cotton hence it weakens the weakens the argument that the price for retail will fall .
SVP
Joined: 16 Oct 2003
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25 Jan 2006, 14:22
A is good.
SVP
Joined: 16 Oct 2003
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25 Jan 2006, 14:23
A is good.
Current Student
Joined: 29 Jan 2005
Posts: 5218

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25 Jan 2006, 21:54
Straight (A). Increased processing costs will be passed on to the consumer.
Manager
Joined: 31 Aug 2011
Posts: 215
Re: Unlike the wholesale price of raw wool, the wholesale price [#permalink]

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28 Aug 2012, 03:10
I found nice discussion on this topic here
unlike-the-wholesale-price-of-raw-wool-the-wholesale-price-93250.html
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Re: Unlike the wholesale price of raw wool, the wholesale price   [#permalink] 28 Aug 2012, 03:10
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# Unlike the wholesale price of raw wool, the wholesale price

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