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When compact discs first entered the market, they were priced signific

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When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 01:23
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When compact discs first entered the market, they were priced significantly higher than vinyl records. Manufacturers attributed the difference in price to the difference in production costs, saying that compact disc production was expensive because the technology was new and unfamiliar. As the technology became more efficient, the price of the discs did indeed come down. But vinyl records, whose production technology has long been established then went up in price to approach that of compact discs.

Which one of the following most helps to explain why the price of vinyl records went up?


(A) Consumers were so enthusiastic about the improved sound quality offered by compact disc technology that they were willing to pay higher price to obtain it.

(B) Some consumers who continued to buy vinyl records instead of compact discs did so because they were unwilling to pay a higher price for compact discs.

(C) As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient.

(D) Compact disc player technology continued to change and develop even after compact discs first entered the market.

(E) When compact discs first entered the market, many consumers continued to buy vinyl records rather than buying the equipment necessary to play compact discs.

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Re: When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 02:00
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Which one of the following most helps to explain why the price of vinyl records went up?

Paraphrasing - Compact disc (CD) costlier than Vinly. CD new tech. CD tech advanced, prices went down but Vinyl prices up? We need to find a reason why Vinyl production prices went up.

(A) Consumers were so enthusiastic about the improved sound quality offered by compact disc technology that they were willing to pay higher price to obtain it. - This reason does not explain anything about the Vinyl production price increase. Easy out.

(B) Some consumers who continued to buy vinyl records instead of compact discs did so because they were unwilling to pay a higher price for compact discs. - This reason like option 'A' does not explain anything about the Vinyl production price increase. Easy out.

(C) As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient. - The production of Vinyl decreased which increased the production cost and gives us the logical reason. Correct :thumbup:

(D) Compact disc player technology continued to change and develop even after compact discs first entered the market. - CD tech continued to grow AND .... nothing. No effect. Easy out.

(E) When compact discs first entered the market, many consumers continued to buy vinyl records rather than buying the equipment necessary to play compact discs. - This is 180. This could have decreased Vinyl production cost if consumers were kept on buying it. Out
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Re: When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 02:34
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(A) might explain high prices for compact discs, but NOT the rising cost of vinyl records.

(B) suggest that vinyl records were cheaper than compact discs. But this ignores the issue of why vinyl records became more expensive at some point in the process.

(C) is the CORRECT ANSWER. This explains why vinyl records became more expensive and at the same time, compact discs became cheaper.

(D) is out of scope. This doesn't discuss the rising cost of vinyl records.

(E) ignores the issue of the rising cost of vinyl records. This suggests that the process of switching over to compact discs either took longer than was necessary, or never fully happened. But why people stayed with compact discs is irrelevant to the issue of the rising cost of vinyl records.

FINAL ANSWER IS (C)
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Re: When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 07:31
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Quote:
When compact discs first entered the market, they were priced significantly higher than vinyl records. Manufacturers attributed the difference in price to the difference in production costs, saying that compact disc production was expensive because the technology was new and unfamiliar. As the technology became more efficient, the price of the discs did indeed come down. But vinyl records, whose production technology has long been established then went up in price to approach that of compact discs.

Which one of the following most helps to explain why the price of vinyl records went up?


(A) Consumers were so enthusiastic about the improved sound quality offered by compact disc technology that they were willing to pay higher price to obtain it.

(B) Some consumers who continued to buy vinyl records instead of compact discs did so because they were unwilling to pay a higher price for compact discs.

(C) As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient.

(D) Compact disc player technology continued to change and develop even after compact discs first entered the market.

(E) When compact discs first entered the market, many consumers continued to buy vinyl records rather than buying the equipment necessary to play compact discs.


ARGUMENT
in the beginning cd's were expensive, because it was new and less cost-efficient than vinyl;
as tech advanced, cd prices came down because it became more cost-efficient;
however, vinyl prices came up, how come?

Ans (C) the inverse happened to vinyl, less buyers meant less efficient production raising costs, then prices.
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Re: When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 08:43
conclusion:
As the technology became more efficient, the price of the discs did indeed come down. But vinyl records, whose production technology has long been established then went up in price to approach that of compact discs.


IMO C: is correct
As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient.

When compact discs first entered the market, they were priced significantly higher than vinyl records. Manufacturers attributed the difference in price to the difference in production costs, saying that compact disc production was expensive because the technology was new and unfamiliar. As the technology became more efficient, the price of the discs did indeed come down. But vinyl records, whose production technology has long been established then went up in price to approach that of compact discs.

Which one of the following most helps to explain why the price of vinyl records went up?


(A) Consumers were so enthusiastic about the improved sound quality offered by compact disc technology that they were willing to pay higher price to obtain it.

(B) Some consumers who continued to buy vinyl records instead of compact discs did so because they were unwilling to pay a higher price for compact discs.

(C) As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient.

(D) Compact disc player technology continued to change and develop even after compact discs first entered the market.

(E) When compact discs first entered the market, many consumers continued to buy vinyl records rather than buying the equipment necessary to play compact discs.
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Re: When compact discs first entered the market, they were priced signific  [#permalink]

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New post 19 Feb 2020, 09:59
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When compact discs first entered the market, they were priced significantly higher than vinyl records. Manufacturers attributed the difference in price to the difference in production costs, saying that compact disc production was expensive because the technology was new and unfamiliar. As the technology became more efficient, the price of the discs did indeed come down. But vinyl records, whose production technology has long been established then went up in price to approach that of compact discs.

Which one of the following most helps to explain why the price of vinyl records went up?

(A) Consumers were so enthusiastic about the improved sound quality offered by compact disc technology that they were willing to pay higher price to obtain it. - WRONG. Doesn't deal with the concern we are looking for.

(B) Some consumers who continued to buy vinyl records instead of compact discs did so because they were unwilling to pay a higher price for compact discs. - WRONG. Again similar reasoning as that of option A.

(C) As consumers bought compact discs instead of vinyl records, the number of vinyl records produced decreased, making their production less cost-efficient. - CORRECT. A less efficient production led to increase in per unit production cost thus sales price. Those who, though may be less, bought vinyl records bought them at higher price.

(D) Compact disc player technology continued to change and develop even after compact discs first entered the market. - WRONG. Not relevant.

(E) When compact discs first entered the market, many consumers continued to buy vinyl records rather than buying the equipment necessary to play compact discs. - WRONG. Though the demand was there but the option doesn't explain why the rice kept rising for vinyl records.

IMO Answer C.
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Re: When compact discs first entered the market, they were priced signific   [#permalink] 19 Feb 2020, 09:59
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