Although it is an imperfect model for describing a complex market

Question

Although it is an imperfect model for describing a complex market, the theory of supply and demand is a reasonably accurate method of explaining, describing, and predicting how the quantity and price of goods fluctuate within a market. Economists define supply as the amount of a particular good that producers are willing to sell at a certain price. For example, a manufacturer might be willing to sell 7,000 sprockets if each one sells for $0.45, but would be willing to sell substantially more sprockets, perhaps 12,000, for a higher price of $0.82. Conversely, demand represents the quantity of a given item that consumers will purchase at a set price; in the most efficient market, all buyers pay the lowest price available, and all sellers charge the highest price they are able. The intersection of these occurrences is graphically represented in supply and demand curves that show the prices at which a product becomes too expensive or too readily available.   1 
Which one of the following best expresses the main idea of the passage?

A explaining why buyers in a given market tend to seek the lowest price on available goods
B offering a dissenting perspective on an obsolete economic model
C persuading readers that the model of supply and demand is the best method for understanding market forces
D providing an explanation of the two primary elements of an economic model and how they intersect
E analyzing the fluctuation of supply and demand within a market

2

If the producer of sprockets nearly doubles its prices as described in the passage, it follows that

I buyers in the market will be likely to purchase more of the sprockets being sold.
II the price of sprockets will continue to increase.
III buyers in the market will be likely to purchase fewer of the sprockets being sold.

A I only
B II only
C III only
D I and II only
E II and III only

3

Select the sentence in the passage that illustrates an abstract concept presented by the author.

A The first sentence
B The second sentence
C The third sentence
D The fourth sentence
E The fifth sentence

Jyotir2212 · Answer

total time taken 2 min:22 sec, 2 right and 1st wrong. Easy Passage!:)

purvikhandelwal1 · Answer

Can someone explain the solution to Q3? I didn't get it.

Thank you!

ParamjitDasGMAT · Answer

Hi purvikhandelwal1 , I'll be happy to help. I would like to preface my response by mentioning that, straight off the bat, this doesn't appear to be a very "GMAT-like" question -- it's more similar to a GRE-themed "select in-passage" question type (and even then the question does seem to be a bit odd, to say the least). With that out of the way, the only possible answer to this question can be Option (C), since only the third sentence exemplifies (or illustrates ) a concept, i.e., that of supply. Thus, sentence 3 -- "for example, a manufacturer might be willing to sell 7,000 sprockets if each one sells for $0.45, but would be willing to sell substantially more sprockets, perhaps 12,000, for a higher price of $0.82" -- is an example to better understand the theoretical/abstract economic concept of "supply". I also don't particularly like the usage of the word "abstract" in the question: the concept of "supply" is a concept, sure, but whether it is an abstract concept is anybody's guess. I would recommend sticking to official/LSAT passages for RC practice (along with daily reading, of course

). The passages there always conform to the GMAT-styled passages -- LSAT passages are slightly harder, but that should be considered good practice -- in terms of the flavour, questions, and passage structuring. Hope it helps.

Although it is an imperfect model for describing a complex market

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GMAT Reading Comprehension (RC) Questions

Although it is an imperfect model for describing a complex market

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