assumption question

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assumption question

by jamesk486 » Fri Jun 01, 2007 3:49 pm
In the past, every ten-percentage-point increase in cigarette prices in the country of Coponia has decreased per capita sales of cigarettes by four percent. Coponia is about to raise taxes on cigarettes by 9 cents per pack. The average price of cigarettes in Coponia is and has been for more than a year 90 cents per pack. So the tax hike stands an excellent chance of reducing per capita sales of cigarettes by four percent.
Which of the following is an assumption on which the argument depends?

A.Tobacco companies are unlikely to reduce their profit per pack of cigarettes to avoid an increase in the cost per pack to consumers in Coponia.
B.Previous increases in cigarette prices in Coponia have generally been due to increases in taxes on cigarettes.
C.Any decrease in per capita sales of cigarettes in Coponia will result mainly from an increase in the number of people who quit smoking entirely.
D.At present, the price of a pack of cigarettes in Coponia includes taxes that amount to less than ten percent of the total selling price.
E.The number of people in Coponia who smoke cigarettes has remained relatively constant for the past several years.

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by 800guy » Fri Jun 08, 2007 10:36 am

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by rocky » Sat Jun 09, 2007 9:36 pm
Seems B only!
Getting into it

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by discreet » Sat Jun 09, 2007 11:31 pm
More close to B but I was also confused with E.
"per capita" is dependant on Number of people who smoke ?any other views?Whats the OA?

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by Umar82 » Tue Nov 25, 2008 9:37 am
answer is C , read the question carefully

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by Jatinder » Tue Nov 25, 2008 10:05 am
B/w D and E

I choose E...
(Past == present)
OA?
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by rohangupta83 » Tue Nov 25, 2008 10:20 am
imo E

if the population stays constant and cigarette consumption decreases then the consumption per capita decreases.

For example - population = 1000

consumption = 100,000 cigarette packs

per capita consumption (consumption per person) = 100,000/1000 = 100

if population stays constant = 1000

consumption decreases to 80,000

per capita consumption = 80,000/1000 = 80 (therefore, per capita consumption decreased)

Hence, imo E

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by schumi_gmat » Tue Nov 25, 2008 4:54 pm
IMO E.

The explanation same as Rohangupta

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by pre-gmat » Wed Nov 26, 2008 10:15 am
I guess the answer should be A

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by nervesofsteel » Wed Nov 26, 2008 10:20 am
IMO A

A.Tobacco companies are unlikely to reduce their profit per pack of cigarettes to avoid an increase in the cost per pack to consumers in Coponia.

If tobacco companies can reduce their profit .. then a tax hike will not increase price .. thus will not decrease consumption....

I tried denial test....

Please correct me if im wrong...

Whts the OA..??

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by nsharma » Thu Dec 11, 2008 11:00 am
What is the officail answer?

I think A is the answer for the same reasons stated by nervesofsteel.

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by niraj_a » Thu Dec 11, 2008 12:23 pm
B for me

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by 4meonly » Thu Dec 11, 2008 11:41 pm
I also vote for B

Conclusion:
So the tax hike stands an excellent chance of reducing per capita sales of cigarettes by four percent.
increased taxes ---> decrease per capeta sales

If taxes were nor the only reason for decreased sales then conclusion will not work.

B.Previous increases in cigarette prices in Coponia have generally been due to increases in taxes on cigarettes.
Negate:
Previous increases in cigarette prices in Coponia have NOT generally been due to increases in taxes on cigarettes.
Conclusion doest work here

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by nervesofsteel » Fri Dec 12, 2008 10:50 am
Why B is wrong IMO

every ten-percentage-point increase in cigarette prices in the country of Coponia has decreased per capita sales of cigarettes by four percent

The conclusion says every 10% hike in prices ... will lead to decrease in consumption... It doesn't matter the increase is due to Taxes or Something else...

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by ronniecoleman » Fri Dec 12, 2008 11:26 am
IMO A
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