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Until 2002, when Laconia became part of the tariff union,

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Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 22 Apr 2013, 02:04
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Question Stats:

69% (01:29) correct 31% (01:48) wrong based on 359 sessions

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Until 2002, when Laconia became part of the tariff union, Laconia only allowed sales of domestic dairy products. Soon after, annual local sales of dairy products manufactured by Laconian dairy companies began to decline steadily. Even though Laconian dairies did not reduce their marketing and distribution efforts, the 2005 domestic sales of those companies were half what they had been before 2002. This provides grounds to hypothesize that by 2005 foreign manufacturers had taken over about 50 percent of the Laconian dairy market.

The hypothesis above depends on which of the following assumptions?

(A)After their country joined the tariff union, Laconians did not drastically decrease their consumption of dairy products.

(B)Between 2002 and 2005, several Laconian dairy manufacturers were forced out of business.

(C)In general, after Laconia joined the tariff union the number of foreign companies distributing their goods and services in Laconia increased.

(D)Between 2002 and 2005, foreign dairies increased their sales in Laconia each year.

(E)The variety of dairy products available in Laconia increased after the country joined the tariff union.
[Reveal] Spoiler: OA

Last edited by guerrero25 on 22 Apr 2013, 02:47, edited 1 time in total.

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Re: Until 2002, when Laconia became part of the tariff union [#permalink]

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After Laconia became part of the union, allowing foreign companies to sale diary products, total sales of dairy products manufactured by Laconian dairy companies began to decline steadily (even though "Laconian dairies did not reduce their marketing and distribution efforts"). This could be caused by two factors: 1)low demand 2)foreign manufacturers had taken over market share.

The conclusion states that the cause is the second one, so the assumption must "cancel" the other one.

IMO A.

(A)After their country joined the tariff union, Laconians did not drastically decrease their consumption of dairy products.
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Re: Until 2002, when Laconia became part of the tariff union [#permalink]

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New post 22 Apr 2013, 11:56
i think a is the instant answer....

read the argument carefully...It says the between 2002 to 2005 Foreign manufacturers captured the Laconia's 50% domestic dairy market share, and the domestic sales in 2005 were half of what it was in 2002. so what if the population of locania stopped consuming dairy product drastically.

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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 05 Jul 2014, 06:21
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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 06 Jul 2014, 03:20
Interesting question.. option (A) protects the conclusion against weakener (any alternate reason .. market size itself shrinking) Hence it is correct

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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 12 Jul 2014, 12:56
A is indeed the answer. But can somebody help me in eliminating D? On negating this too seems to destroy the argument. :cry:

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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 13 Jul 2014, 22:21
A is a "causal assumption" excluding any other reasons for declining sales. I missed it first, so spent to much time

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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 14 Jul 2014, 01:24
I was also confused between A and D... A seems to be the right answer... D tells about the increase in sale of foreign diaries... not why local sales declined...
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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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Re: Until 2002, when Laconia became part of the tariff union, [#permalink]

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New post 01 Nov 2017, 13:58
after all the practice in assumption related questions, i still manage to get this one wrong.. though i do agree with the oa provided.. thanks

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Re: Until 2002, when Laconia became part of the tariff union,   [#permalink] 01 Nov 2017, 13:58
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Until 2002, when Laconia became part of the tariff union,

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