Here is my reasoning for this question: Only B and C are relevant to the scope of the text. The consumption of cigarettes has gone up by 3.4 %, while the population has increased by 5% in the same period. So evidently there is some reduction in consumption of cigarettes. The problem which C is that one cannot be sure whether the number of non smokers had increased or the smokers had reduced their consumption. But either way, per capita consumption has reduced. Hence B is correct.

Since population increased at higher rate than cigarettes so per capita consumption would have been decreased.
Hence B.
We cant infer about profits. so, A and D Out.
E and C , I striked ot in a first go...it looked OOS to me.

gmat740

For numerical questions, I think it helps to get into Quant Mode (i.e create tables/chars/write numbers down)

First Per Capita Defintion = Per Head = some quantity/ number of people.


We have 3 figures here: Consumption of Cigarettes, Total Sales of Chewing Tobacco and Total US Population

Assuming all 3 figures are all "1" in 1973 then the increase in 1976 would be
Consumption of Cigarettes: 1--> 1.034
Total Sales of Chewing Tobacco: 1-->1.18
Total US Population: 1--> 1.05

Answers - Remember Conclusion questions have to be true
A. So they had higher profits, what if their costs increased in higher numbers? (Profits = Revenue - Costs) -ELIMINATE
B. From Per Capita Definition above we know that the 1976 numbers will always be higher because the denominator -Total US population is higher - in the calculation (Total Consumption of Cigarettes/Total US Population) will always be greater than the denominator for the 1973 numbers - CORRECT
C. We are not given any information about non smokers - cannot make any assumptions here - ELIMINATE
D. We are not given any information that allows us to come to this conclusion. There is nothing about costs stated - ELIMINATE
E. Again nothing in the stimulus to allow us make such a jump to conclusion. - ELIMINATE

B
No of people in 1973 : 1000
cig smokers:100
tabocao chew=100

1976
1050
104
118

per capita cig smoking in 1973 =100/1000=.1
in 1976=104/1050=.09.

C is wrong as % increase is give from 1973 to 1976. The actual percentage of smokers and people chewing Tobacco is not given , so we can not find out the % of non smokers.

There can be only either smokers or non-smokers in US. If percentage of smokers has increased that means overall proportion of smokers in US has increased, assuming total population in the US is same both years.



B is wrong, because it only talks about cigarettes and doesn't address whole tobacco industry, whereas C can be inferred from all the statements given in the stimuli.


Anybody wanna refute my reasoning, plz post ur explanation.

Answer B seems to be logical one out of other answer choices