Question Pack 1 | Pretzel vendor: The new license fee for

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Pretzel vendor: The new license fee for operating a pretzel stand outside the art museum is prohibitively expensive. Charging typical prices, a vendor would need to sell an average of 25 pretzels per hour to break even. At my stand outside city hall, I average only 15 per hour. Therefore, I could not break even running a pretzel stand outside the art museum, much less turn a profit.

Which of the following, if true, most strongly supports the pretzel vendor's argument?

(A) There is currently no license fee for operating a pretzel stand outside city hall.
(B) Pretzel vendors who operate stands outside the art museum were making a profit before the imposition of the new license fee.
(C) The number of pretzel stands outside the art museum is no greater than the number of pretzel stands now outside city hall.
(D) People who buy pretzels at pretzel stands are most likely to do so during the hours at which the art museum is open to the public.
(E) Fewer people passing the art museum than passing city hall are likely to buy pretzels.
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by GMATGuruNY » Sun Apr 09, 2017 3:16 am
richachampion wrote:Pretzel vendor: The new license fee for operating a pretzel stand outside the art museum is prohibitively expensive. Charging typical prices, a vendor would need to sell an average of 25 pretzels per hour to break even. At my stand outside city hall, I average only 15 per hour. Therefore, I could not break even running a pretzel stand outside the art museum, much less turn a profit.

Which of the following, if true, most strongly supports the pretzel vendor's argument?

(A) There is currently no license fee for operating a pretzel stand outside city hall.
(B) Pretzel vendors who operate stands outside the art museum were making a profit before the imposition of the new license fee.
(C) The number of pretzel stands outside the art museum is no greater than the number of pretzel stands now outside city hall.
(D) People who buy pretzels at pretzel stands are most likely to do so during the hours at which the art museum is open to the public.
(E) Fewer people passing the art museum than passing city hall are likely to buy pretzels.
Premise: To break even outside the art museum, the vendor would need to sell more pretzels per hour (25) then he currently sells per hour outside city hall (15).
Conclusion: The vendor will not be able to break even outside the art museum.

One assumption is that -- if the vendor works outside the art museum -- he will not be able to increase his selling rate from 15 pretzels per hour to 25 per hour.
E: Fewer people passing the art museum than passing city hall are likely to buy pretzels.
Implication:
If he works outside the art museum, the vendor will not be able to increase his selling rate from 15 pretzels per hour to 25 per hour, STRENGTHENING the conclusion that he will not be able to break even.

The correct answer is E.
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by RBBmba@2014 » Mon Apr 10, 2017 5:28 am
Hi Verbal Experts,
Not able to understand why the OA is preferred to Option A ? How Option A is incorrect ?

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by richachampion » Mon Apr 10, 2017 8:12 am
RBBmba@2014 wrote:Hi Verbal Experts,
Not able to understand why the OA is preferred to Option A ? How Option A is incorrect ?
ely

Option A is completely out of scope.
(A) There is currently no license fee for operating a pretzel stand outside city hall.


the question is revolving around whther or not he will be able to break even that means whether or not he will be sell 25 or more. License fee has no impact over that.
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