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Gaurav 2013-fall Really wants to Beat The GMAT! Default Avatar
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CR or DS problem?? Post Wed Apr 25, 2012 10:08 am
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  • Lap #[LAPCOUNT] ([LAPTIME])
    Effects of the past two years’ economic recession on City X have included a downturn in the restaurant industry. The local Chamber of Commerce reported a 25 percent decrease in average sales among restaurants during the first year of the recession. During the second year, however, despite a stagnant economy, the average sales returned to within 5 percent of prerecession levels.



    Which of the following, if true, most helps to explain the change in restaurant sales between the first and second year of the recession?


    Some restaurants did not suffer any decrease in sales.

    Most of the restaurants in City X whose sales decreased by more than 20 percent went out of business during the first year of the recession.

    Some restaurants started offering reduced prices in an effort to stimulate sales during the second year of the recession.

    Between the first and second years of the recession, food prices went up in City X.

    More residents of City X than average reported staying home for meals during the first year of the recession in an effort to save money.


    from PR

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    spartacus1412 Really wants to Beat The GMAT! Default Avatar
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    Post Wed Apr 25, 2012 8:57 pm
    I would go with B
    Most of the restaurants in City X whose sales decreased by more than 20 percent went out of business during the first year of the recession.


    OPtion A is irrelevant to the question.

    option B suggests that most of the restaurants with decreased sales went out of business, hence, effectively decreasing the total number of restaurants.Now if restaurants decrease, and demand remains the same as in the first year of recession then sales in the second year will probably increase.

    optionC-this also helps but option B is stronger than Option C

    Option D-contrary

    Option E- contrary

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    Hope it helps!Smile

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    Gaurav 2013-fall Really wants to Beat The GMAT! Default Avatar
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    Post Wed Apr 25, 2012 10:27 pm
    OA is B

    heymayank08 Really wants to Beat The GMAT!
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    Post Fri Apr 27, 2012 9:50 pm
    +1 B

    ice_rush GMAT Destroyer! Default Avatar
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    Post Sat Apr 28, 2012 9:45 pm
    (B) is the clear winner.

    vikram4689 GMAT Titan
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    Post Sat Apr 28, 2012 10:33 pm
    Some restaurants did not suffer any decrease in sales.
    We are concerned about sales of industry and not of selected few

    Most of the restaurants in City X whose sales decreased by more than 20 percent went out of business during the first year of the recession.
    bingo!, weaker ones went out of business so the one that we pulling down the average are out and hence average sales increased

    Some restaurants started offering reduced prices in an effort to stimulate sales during the second year of the recession.
    this explains but B is better also see some vs most in C and B resp.

    Between the first and second years of the recession, food prices went up in City X.
    This should result in reduced sales in both years

    More residents of City X than average reported staying home for meals during the first year of the recession in an effort to save money.
    this explains why sales were low for 1st year only, but nothing is said about 2nd year

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