restaurant

[ronniecoleman]

Food industry experts argue that an increase in the quality of food served by a restaurant will yield an increase in patrons and, thus, an increase in profits for the restaurant. But recent earnings reports indicate that those restaurants which went from serving average quality food to high quality food showed no increase in patrons and a loss in profits.

Which of the following statements, if true, offers the best partial explanation of this discrepancy?

(A) The average American eats out more and more every year.
(B) The increase in food quality gives a restaurant justification to increase their prices.
(C) Customers in restaurants are unaware of all but the most significant changes.
(D) Restaurants who serve higher quality food make more money.
(E) Customers appreciate higher quality food and tell their friends about it

[scoobydooby]

C?

we need explanation for either but not both
- no change in customers
- decline in profits

(A) The average American eats out more and more every year. Doesnt explain why profits would decrease or customers wouldnt increase

(B) The increase in food quality gives a restaurant justification to increase their prices. The high prices must have been a deterrent to increase in customers and hence profits fell (full explanation)

(C) Customers in restaurants are unaware of all but the most significant changes. If they were unaware then possibly there was no increase in customers. no explanation about decline in profits. Partial explanation

(D) Restaurants who serve higher quality food make more money. Doesnt explain why there was no increase in customers and decrease in profits

(E) Customers appreciate higher quality food and tell their friends about it. This would explain an increase in customers if at all. It neither explains no change in customers nor decline in profits

[naveen.bobbili]

I am stuck between chioce (b) and choice(c).Other we can eliminate.

(B) The increase in food quality gives a restaurant justification to increase their prices.
- It only gives a justification but doesnt state if those restaurants actually increase the price.

(C) Customers in restaurants are unaware of all but the most significant changes.
- Average quality to high quality change has to be wieghed here.I feel we can stick to this one.

My answer is C.

[vishubn]

Food industry increase in quailty --> increase >> patraons---> profits
sooo first adn fore msot thing at this point resurant is serving bad quailty???
we dotn know!!
and does increase in quailty which will obviously increase the cost for the restuarant is able to get money back with current menu pricce

and if menu prices is increased then it might be expensive for many patrosn to afford !!

premise 2--: recent earnigns -- > showing no profit isnipte of quality of food might be due to above reason

a---not relevant
b--Bingo --- coorect !! quailty -->higher price-->drop in customers--> so they are facing loss from both the customer drop and cost incurred for their prep of high quailty food
c---- it doesn t help anywhere for restaurant to make profits
d---not necessary... quality comes with a price soo there might be a drop in profit so they cant make profits--wrong
e--- if customers tell people abt it ! this is in turn markettign and mroe people will come ( so profit should increase)--wrong


IMO B

vishu

[pbanavara]

"showed no increase in patrons and a loss in profits."

Option B - refers to the profits aspect and we are asked to provide a partial explanation for the discrepancy. This fits the bill.

- pradeep

[vishubn]

wats the OA ???

ronnie boy!!

visu

[amitabhprasad]

My pick is "C"
better quality food led to increase in cost, which restaurant owner were expecting to take care with increase in number of patrons.
If the customer are not aware of this imp. aspects the expected increase will not happen, hence the loss.

what's OA

[hariharakarthi]

It is a Resolve the Paradox question type.
The question stem has paradox indicator word "explain" This belong to second question family.

We have to consider all the ans as true. In resolve the paradox qn, correct ans will allow both sides to be factually correct and it will explain how the situation came into being or add a piece of info that shows how two ideas or occurances co-exist.


Here ans choice B will do the above state one. Hence it is the correct ans choice.

Correct me if I am wrong.

Regards,
Karthi S

[amitabhprasad]

hariharakarthi,
but does "B" explains why restaurants is losing money ?
With increase in cost they should not make any losses at least.[/quote]

[hariharakarthi]

valid point.

I over read the no increase in patrons and loss in profits,

what is the OA?

[hariharakarthi]

The statement reads increasing the quality will yield increase in partrons and thus the profits. Here the profit will increase due to increase in partrons.

But, the second statement says that there is no increase in customers and decline in profits.

Here, the main point of paradox is why there is no increase in the customers. If the cost is high, then customers may not come in high nums. Hence, I choose ans B.

Regards,
Karthi S

[ronniecoleman]

wats the OA ???

ronnie boy!!

visu

IMO C

[hariharakarthi]

what is the OA for this?

Both B and C looks attractive.

SO, OA and explanation plz?

[nicolette]

Cannot decide between C and B. Can anyone brake down these two choices for me please

[ashley.com]

C is the best