Critical Reasoning

The U.S. gets 5 percent of its oil from Mexico. If Mexico raises the price of its oil by 20 percent, that will result in an increase of 1 percent (5 percent times 20 percent) in the price of oil products in the U.S.

Which of the following is an assumption upon which the above argument depends?
A) Oil prices in the U.S. are not affected by inflation in Mexico
B) Other countries will not increase oil exports to the U.S.
C) The price increase will not result in a decrease in the sales of Mexican oil products
D) People will not substitute other products for those made from Mexican oil
E) A 1 percent price increase in oil products will not be recognized by the buying public
[spoiler]
iut took me 1 minute and 55 seconds to choose C . i was just between B and C but was deeply thinking that B could be the answer. if the usa would import oil from another countries instead of importing oil from mexico becos of 5% increasing price, the concluion will be failed however considering another countries is far from information mentioned in the text so i didint choose B. whats your idea? whats your answer?[/spoiler]

If this is from the real test, I suggest you take it off.

I will go for B since this is clear assumption that US will continue to take oil at the increased rate from Mexico and US will not consider taking from other countries.

diebeatsthegmat wrote:The U.S. gets 5 percent of its oil from Mexico. If Mexico raises the price of its oil by 20 percent, that will result in an increase of 1 percent (5 percent times 20 percent) in the price of oil products in the U.S.

Which of the following is an assumption upon which the above argument depends?
A) Oil prices in the U.S. are not affected by inflation in Mexico
B) Other countries will not increase oil exports to the U.S.
C) The price increase will not result in a decrease in the sales of Mexican oil products
D) People will not substitute other products for those made from Mexican oil
E) A 1 percent price increase in oil products will not be recognized by the buying public
[spoiler]
iut took me 1 minute and 55 seconds to choose C . i was just between B and C but was deeply thinking that B could be the answer. if the usa would import oil from another countries instead of importing oil from mexico becos of 5% increasing price, the concluion will be failed however considering another countries is far from information mentioned in the text so i didint choose B. whats your idea? whats your answer?[/spoiler]

C is out of scope and not a contnder as 1)Oil products 2) the word Mexican
We are not importing Mexican oil products and once imported it is our Oil not the mexicans.

IMO: C

Conclusion: IF Mexico raises oil price 20%, THEN 1% increase in price of US oil.

Evidence: US gets 5% of the oil from Mexico.

Assumptions: The US won't switch to different oil source when Mexico raises the price.

Question Rephrase: What is an assumption? (see assumption for prediction)

C is almost verbatim our prediction, and must be the correct answer. The entire argument assumes the US will just continue to buy more expensive oil, and will allow the price to increase by 1%.

B has similar logic but does not relate to the evidence and the conclusion which are focuses on the US-Mexico oil relationship. What "other countries" do does not relate specifically to the conclusion described in the "if...then..." statement.

I choose B over C as C talks about "oil products" and not "oil".
what is the OA?

Hi VivianKerr,

As per my understanding, Price increase and sales decrease are 2 different thing. In question, we need to find argument to support price increase. If US can't get additional oil from other countries, then price of oil products will increase, due to increase cost.

Please help me to understand.

My take C...whats the OA?