- Fri Jan 21, 2011 12:00 am
#22829
Complete Question Explanation
Weaken. The correct answer choice is (D)
Because soft drinks and pay phone calls cost the same amount in 1970 and the price of soft drinks has doubled since then, the editorial concludes that phone companies should be allowed to increase the price of pay phone calls as well. This argument is quite weak, as the price of each product or service is typically determined by a number of factors, including cost of production, demand, and so on. The author offers no reason for assuming that the variables affecting soft drink prices are positively correlated with the variables determining the price of pay phone calls. If millions still drink Pepsi but demand for pay phones has decreased as a result of cell phone use, it is quite reasonable to suspect that one will cost more than the other. Likewise, if the cost of transmitting a phone call has decreased at a greater rate than the cost of manufacturing a can of Pepsi, using a pay phone today will likely cost a lot less than drinking a can of soda.
Answer choice (A): We have no reason to believe that the price of the product supplied by a machine is affected by the price of the machine itself. Even if it were, this answer choice only compares the cost of pay phones to the cost of soft-drink machines in the 1970's. It is unclear how such comparison would explain why the price of pay phone calls should be higher today. This answer choice is incorrect.
Answer choice (B): This answer choice does the exact opposite of what is needed. If inflation has caused the prices of most goods, including telephone equipment, to double since the 1970s, it would be reasonable to allow phone companies to adjust for inflation by increasing the price of pay phone calls. This answer choice is incorrect.
Answer choice (C): If government regulations of phone call prices are no more stringent today than they were in the past, phone companies have one less obstacle to overcome if they wish to raise prices. However, this answer choice provides no reason as to why pay phone prices should increase. This answer choice is incorrect.
Answer choice (D): This is the correct answer choice. If the cost of producing a soft-drink has increased at a greater rate than the cost of making a phone call, it is reasonable to expect that a soft drink from a vending machine purchased today will cost more than making a call from a pay phone.
Answer choice (E): At first glance, this may seem like an attractive answer choice, as it implies that any increase in the price of pay phone calls is justified by the higher level of technological sophistication behind telephone equipment. However, higher levels of sophistication do not necessarily equate with increased production costs: it is entirely possible that the technological advances described here have made the cost of telephone equipment lower than it was in the 1970's, thus pushing down the price of pay phone calls. This answer choice is incorrect.
Weaken. The correct answer choice is (D)
Because soft drinks and pay phone calls cost the same amount in 1970 and the price of soft drinks has doubled since then, the editorial concludes that phone companies should be allowed to increase the price of pay phone calls as well. This argument is quite weak, as the price of each product or service is typically determined by a number of factors, including cost of production, demand, and so on. The author offers no reason for assuming that the variables affecting soft drink prices are positively correlated with the variables determining the price of pay phone calls. If millions still drink Pepsi but demand for pay phones has decreased as a result of cell phone use, it is quite reasonable to suspect that one will cost more than the other. Likewise, if the cost of transmitting a phone call has decreased at a greater rate than the cost of manufacturing a can of Pepsi, using a pay phone today will likely cost a lot less than drinking a can of soda.
Answer choice (A): We have no reason to believe that the price of the product supplied by a machine is affected by the price of the machine itself. Even if it were, this answer choice only compares the cost of pay phones to the cost of soft-drink machines in the 1970's. It is unclear how such comparison would explain why the price of pay phone calls should be higher today. This answer choice is incorrect.
Answer choice (B): This answer choice does the exact opposite of what is needed. If inflation has caused the prices of most goods, including telephone equipment, to double since the 1970s, it would be reasonable to allow phone companies to adjust for inflation by increasing the price of pay phone calls. This answer choice is incorrect.
Answer choice (C): If government regulations of phone call prices are no more stringent today than they were in the past, phone companies have one less obstacle to overcome if they wish to raise prices. However, this answer choice provides no reason as to why pay phone prices should increase. This answer choice is incorrect.
Answer choice (D): This is the correct answer choice. If the cost of producing a soft-drink has increased at a greater rate than the cost of making a phone call, it is reasonable to expect that a soft drink from a vending machine purchased today will cost more than making a call from a pay phone.
Answer choice (E): At first glance, this may seem like an attractive answer choice, as it implies that any increase in the price of pay phone calls is justified by the higher level of technological sophistication behind telephone equipment. However, higher levels of sophistication do not necessarily equate with increased production costs: it is entirely possible that the technological advances described here have made the cost of telephone equipment lower than it was in the 1970's, thus pushing down the price of pay phone calls. This answer choice is incorrect.