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11 Jul 2024, 07:00
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
86% (01:15) correct
14%
(01:28)
wrong
based on 661
sessions
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Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year. The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.
Which of the following is an assumption made in drawing the conclusion above?
(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
(D) The cost of gasoline will remain stable throughout the year.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
Which of the following is an assumption made in drawing the conclusion above?
(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
(D) The cost of gasoline will remain stable throughout the year.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
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11 Jul 2024, 08:00
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GMAT Club Official Explanation:
Correct Answer: C. City dwellers are primarily motivated by cost savings when choosing a vehicle.
This choice validates the conclusion that the decrease in cost due to improved battery technology will lead to higher sales and pre-orders. The argument assumes that cost is a significant factor for city dwellers when purchasing vehicles because if cost savings were not the primary motivation, then the decrease in price would not lead to an increase in consumption as predicted.
A. Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
This choice does not relate to the claim about cost reduction leading to increased sales and pre-orders of electric cars. This is largely irrelevant as there is no connection with the original argument. Eliminate.
B. The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
This answer choice does not have anything to do with sales and costs of electric cars. Irrelevant. Eliminate.
D. The cost of gasoline will remain stable throughout the year.
There are a few problems with this answer choice:
- First, it suggests that the reason consumers would purchase more electric cars is that they are more cost-efficient than gas cars. We don’t know if the cost advantage vs. gasoline cars is a major factor in the decision.
- Second, and the biggest issue with this answer choice is that unstable gas prices (opposite) does not mean a decrease or negative. The price may rise and make electric cars even more financially advantageous or vice versa.
Third, this answer choice is about the operating costs vs. what the argument told us that the cost of cards has declined. There are 2 elements to owning a car: upfront cost and operating cost. We do not know if the operating costs are a big driver for urban dwellers. I think it would be logical to assume that they are but it is not clear from the passage how significant they are.
- Finally, we still need the answer choice C to be true (that city dwellers are motivated by savings when choosing a car) to make D work. So C is a better choice. Eliminate D.
E. The production of electric cars will be sufficient to meet the increased consumer demand this year.
This is about supply meeting demand and since the text talks about sales and pre-orders (which may extend far into the future), we can eliminate this answer choice.
General Discussion
11 Jul 2024, 07:13
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Let's break down the argument:
Conclusion: The sales and pre-orders of electric cars in urban areas will significantly increase this year.
Premise: Ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.
The argument asserts that because electric cars are now more affordable due to improvements in battery technology, there will be a significant increase in sales and pre-orders of these cars in urban areas. For this conclusion to hold, the argument assumes that affordability is a key factor influencing the purchase decision of city dwellers. We need to find an answer choice that tells us that people are likely to buy electric cars primarily because of their affordability.
(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
This choice addresses the availability of charging infrastructure, which, while important, is not directly linked to the argument's focus on affordability. This is not a necessary assumption. We can rule out A.
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
This choice concerns the performance comparison between electric and gasoline-powered cars. The argument, however, centres on the affordability of electric cars, not their performance relative to gasoline cars. This is not a necessary assumption. We can rule out B.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
This choice directly supports the argument by asserting that cost savings are a primary motivation for city dwellers when choosing a vehicle. If city dwellers did not prioritize cost savings, the lowered cost of electric cars would not necessarily lead to increased sales and pre-orders. This is a necessary assumption for the argument to hold. Let's hold onto C.
(D) The cost of gasoline will remain stable throughout the year.
This choice deals with the cost of gasoline, again which is not directly addressed in the argument. The argument is about the affordability of electric cars due to battery technology improvements, not changes in gasoline prices. This is not a necessary assumption. We can rule out D.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
This choice concerns the supply side of electric cars. While an increase in demand requires sufficient supply, the argument's main focus is on the demand driven by affordability, not on supply constraints. This is not a necessary assumption. We can rule out E.
The best answer is (C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
Conclusion: The sales and pre-orders of electric cars in urban areas will significantly increase this year.
Premise: Ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.
The argument asserts that because electric cars are now more affordable due to improvements in battery technology, there will be a significant increase in sales and pre-orders of these cars in urban areas. For this conclusion to hold, the argument assumes that affordability is a key factor influencing the purchase decision of city dwellers. We need to find an answer choice that tells us that people are likely to buy electric cars primarily because of their affordability.
(A) Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
This choice addresses the availability of charging infrastructure, which, while important, is not directly linked to the argument's focus on affordability. This is not a necessary assumption. We can rule out A.
(B) The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
This choice concerns the performance comparison between electric and gasoline-powered cars. The argument, however, centres on the affordability of electric cars, not their performance relative to gasoline cars. This is not a necessary assumption. We can rule out B.
(C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
This choice directly supports the argument by asserting that cost savings are a primary motivation for city dwellers when choosing a vehicle. If city dwellers did not prioritize cost savings, the lowered cost of electric cars would not necessarily lead to increased sales and pre-orders. This is a necessary assumption for the argument to hold. Let's hold onto C.
(D) The cost of gasoline will remain stable throughout the year.
This choice deals with the cost of gasoline, again which is not directly addressed in the argument. The argument is about the affordability of electric cars due to battery technology improvements, not changes in gasoline prices. This is not a necessary assumption. We can rule out D.
(E) The production of electric cars will be sufficient to meet the increased consumer demand this year.
This choice concerns the supply side of electric cars. While an increase in demand requires sufficient supply, the argument's main focus is on the demand driven by affordability, not on supply constraints. This is not a necessary assumption. We can rule out E.
The best answer is (C) City dwellers are primarily motivated by cost savings when choosing a vehicle.
