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Unlike the wholesale price of uncut diamonds, the wholesale price of o

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Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 01:02
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Unlike the wholesale price of uncut diamonds, the wholesale price of other uncut gemstones has fallen considerably in the last year. Thus, although the retail price of jewelry made with gemstones other than diamonds 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 uncut gemstones has increased during the last year.
B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
C. The operating costs of the average retail jewelry store have remained constant during the last year.
D. The cost of mining gemstones other than diamonds has increased in the last year.
E. Changes in retail prices always lag behind changes in wholesale prices.

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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post Updated on: 12 Nov 2019, 16:57
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I think (A).
Any factor of production impacts the process in which wholesale uncut gemstones are converted into gemstones as finished goods ready for retail could either strengthen or weaken the given statement.

A. The cost of processing uncut gemstones has increased during the last year.
=> Correct. The increasing cost of processing will drive up the retail price


B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
=> Any price of uncut diamonds is irrelevant here. We only care about price of gemstones.
C. The operating costs of the average retail jewelry store have remained constant during the last year.
=> Though the operation costs of store can be a factor contributing to retail price of gemstones, there is no specific correlation stated here.
Even it is the case, the operation costs have remained constant -> no impact on final retail price of gemstones

D. The cost of mining gemstones other than diamonds has increased in the last year.
=> Mining cost has already been counted in the wholesale price. We only care about impacts on price from wholesale to retail
E. Changes in retail prices always lag behind changes in wholesale prices.
=> Retail prices might be slow to follow up with wholesale prices but whether retail prices increase or decrease is not clear.
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Originally posted by Tracy95 on 12 Nov 2019, 01:45.
Last edited by Tracy95 on 12 Nov 2019, 16:57, edited 1 time in total.
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 02:02
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conclusion;
Thus, although the retail price of jewelry made with gemstones other than diamonds has not yet fallen, it will inevitably fall.

IMO A: weakens the argument
The cost of processing uncut gemstones has increased during the last year.

Unlike the wholesale price of uncut diamonds, the wholesale price of other uncut gemstones has fallen considerably in the last year. Thus, although the retail price of jewelry made with gemstones other than diamonds 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 uncut gemstones has increased during the last year.
B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
C. The operating costs of the average retail jewelry store have remained constant during the last year.
D. The cost of mining gemstones other than diamonds has increased in the last year.
E. Changes in retail prices always lag behind changes in wholesale prices.
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 03:28
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The argument states that the fall in wholesale prices results in the fall of retail prices

A. The cost of processing uncut gemstones has increased during the last year...... weakens by saying that retail prices not just depends on wholesale prices but also depends on processing cost.....whole increase will result in increase of retail prices....


OA:A
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 03:36
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Quote:
Unlike the wholesale price of uncut diamonds, the wholesale price of other uncut gemstones has fallen considerably in the last year. Thus, although the retail price of jewelry made with gemstones other than diamonds 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 uncut gemstones has increased during the last year.
B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
C. The operating costs of the average retail jewelry store have remained constant during the last year.
D. The cost of mining gemstones other than diamonds has increased in the last year.
E. Changes in retail prices always lag behind changes in wholesale prices.


ARGUMENT
[prem] wholesale uncut diamonds have fallen considerably less than other uncut gemstones;
[prem] retail price of jewelry made with gems other than diamonds has not yet fallen;
[con] retail price will soon fall; [asum] wholesale prices are linked to retail prices and will follow suit.

WEAKEN
B. irrelevant;
C. if costs remained constant and wholesale decreased, maybe retail could fall - strengthen;
D. cost of mining has increased, however, wholesale prices have decreased, so this is irrelevant;
E. strengthen;

Ans (A) if the cost of processing has increased, then it is safe to assume that the argument is unfounded or flawed.
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 10:50
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Wholesale prices of uncut gemstones has reduced unlike those of diamonds.

Conclusion : Retail prices of uncut gemstones will fall considerably.

Pre - think : Other factors of uncut gemstones have not risen to nullify the effect of falling prices

A. The cost of processing uncut gemstones has increased during the last year.
Correct.
B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
Not relevant
C. The operating costs of the average retail jewelry store have remained constant during the last year.
Average retail jewelry is comp out of scope
D. The cost of mining gemstones other than diamonds has increased in the last year.
This doesn't say uncut gemstones.
E. Changes in retail prices always lag behind changes in wholesale prices.
Irrelevant

Answer is A
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 11:29
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We have to weaken the conclusion which says that retail price of jewellery other than diamonds will fall.

Option A clearly weakens the conclusion. If the cost of processing increases, the retail prices will definitely not decrease.

IMO Option A

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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 12:18
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The right answer is option A.

Premise 1: Though the price of uncut diamonds have not fallen, that of other uncut gemstones have fallen considerably last year.
Conclusion: Although retail price of jewelry made with other gemstones other than diamonds has not fallen yet, it will inevitably fall.

We are to find the option which most seriously weaken the argument presented above.

What about if the cost of processing other uncut gemstones have gone up while the cost uncut gemstones has gone down, would retail prices necessarily go down? Surely not necessarily. This is because the retail price of jewelries does not only depend on the cost of raw materials used for the production of jewelries but also depend on the cost of processing. It is possible that rising cost of processing can offset the reduction in cost of raw materials. Hence, option A is the best weakener for the argument.

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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o  [#permalink]

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New post 12 Nov 2019, 20:42
Unlike the wholesale price of uncut diamonds, the wholesale price of other uncut gemstones has fallen considerably in the last year. Thus, although the retail price of jewelry made with gemstones other than diamonds 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 uncut gemstones has increased during the last year.
B. The wholesale price of uncut diamonds is typically higher than that of the same volume of other uncut gemstones.
C. The operating costs of the average retail jewelry store have remained constant during the last year.
D. The cost of mining gemstones other than diamonds has increased in the last year.
E. Changes in retail prices always lag behind changes in wholesale prices.

Stimulus: The whole sale price of uncut diamonds has increased but that of other gem stones has decreased. The retail jewellery market for gem stones has not fallen but will eventually fall.

weakening: Find a reason that the retail gemstone market will not fall.

Option B and E are strengthening the stimulus instead of weakening hence can be eliminated.
C: the operating cost of the has remained constant. Can be eliminated

In between A and D. IMO D as the mining cost of gemstone increases the overall cost of the retail jewelry will also increase.
The cost of mining other
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Re: Unlike the wholesale price of uncut diamonds, the wholesale price of o   [#permalink] 12 Nov 2019, 20:42
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