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- Wed Apr 27, 2016 9:38 am
#23473
Complete Question Explanation
Must Be True-#%. The correct answer choice is (B)
This stimulus contains no logical argumentation; rather, the author presents the following facts:
Vineyard profit = wholesale price — production costs
The wholesale price of a bottle of Veritas has not changed since 1991.
Veritas' production costs have increased.
What inference can we draw from these facts? Looking at the profit equation above, we are provided with information regarding both the price they charge and the costs that Veritas must bear. Because the cork market has been unkind, Veritas must pay more than they used in costs, yet they have been charging the same price for many years. There is only one inference that can be drawn without further information: Veritas must be making less than they used to on each bottle they sell.
Answer choice (A): The stimulus provides no information as to quantity sold, so there is no way to confirm this answer choice, which must thus be incorrect.
Answer choice (B): This is the correct answer choice, quite similar to our prephrased answer above: each bottle today brings Veritas less profit than each bottle did in 1991.
Answer choice (C): All that we know of the cork manufacturers is that they currently charge more for cork than they did in 1991. We do not know anything about the cork makers' costs, so this answer choice is incorrect.
Answer choice (D): Like incorrect answer choice (A) above, this choice references information that is far beyond the scope of that provided by the stimulus.
Answer choice (E): No such comparison is possible based on the limited facts provided by the author, so this answer choice is incorrect.
Must Be True-#%. The correct answer choice is (B)
This stimulus contains no logical argumentation; rather, the author presents the following facts:
Vineyard profit = wholesale price — production costs
The wholesale price of a bottle of Veritas has not changed since 1991.
Veritas' production costs have increased.
What inference can we draw from these facts? Looking at the profit equation above, we are provided with information regarding both the price they charge and the costs that Veritas must bear. Because the cork market has been unkind, Veritas must pay more than they used in costs, yet they have been charging the same price for many years. There is only one inference that can be drawn without further information: Veritas must be making less than they used to on each bottle they sell.
Answer choice (A): The stimulus provides no information as to quantity sold, so there is no way to confirm this answer choice, which must thus be incorrect.
Answer choice (B): This is the correct answer choice, quite similar to our prephrased answer above: each bottle today brings Veritas less profit than each bottle did in 1991.
Answer choice (C): All that we know of the cork manufacturers is that they currently charge more for cork than they did in 1991. We do not know anything about the cork makers' costs, so this answer choice is incorrect.
Answer choice (D): Like incorrect answer choice (A) above, this choice references information that is far beyond the scope of that provided by the stimulus.
Answer choice (E): No such comparison is possible based on the limited facts provided by the author, so this answer choice is incorrect.