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OFFICIAL EXPLANATION



Over the past 6 years, prices of peripheral computer equipment in Country X, such as printers, mice, and keyboards, have dropped significantly. However, the revenues of computer stores in Country X have increased over the same period.

Which of the following, if true, contributes most to reconciling the seeming discrepancy described above?



A. Prices of personal computers have also decreased over the past 6 years.

Incorrect.

This is a Paradox question, so it is made up of premises only; you need to find a new premise which best resolves the apparent discrepancy between the existing premises:

    Premise A: in the past 6 years, the prices of computer accessories have dropped by a lot

    Premise C: revenues of computer stores increased during this period

    Resolving Premise: ?

This answer choice emphasizes the discrepancy. If there were a decrease not only in the prices of peripheral computer equipment but also in the prices of personal computers, we would expect the revenues of computer stores in Country X to decrease further, not to increase.



B. Over the past 6 years, the prices of peripheral computer equipment in Country Y have soared.

Incorrect.

Country Y is outside the scope of this argument.



C. Over the past 6 years, the prices of peripheral computer equipment in Country Y have decreased.

Incorrect.

Country Y is outside the scope of this argument.



D. Sales of computers in Country X have increased by more than 200% over the past 6 years.

If the sales of actual computers in Country X soared dramatically, the revenues of computer stores would also rise, despite the drop in the prices of the other equipment.


E. The number of computer stores in Country X has more than doubled over the past 6 years.

Incorrect.

This is a Paradox question, so it is made up of premises only; you need to find a new premise which best resolves the apparent discrepancy between the existing premises:

    Premise A: in the past 6 years, the prices of computer accessories have dropped by a lot

    Premise C: revenues of computer stores increased during this period

    Resolving Premise: ?

The number of stores in Country X is irrelevant to the paradox between lower prices and higher revenues. It can be argued that more stores indicates a greater market and therefore more items sold, but this argument would be based on too many assumptions - instead on what is stated in this answer choice.
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