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Pretzel Vendors

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Pretzel Vendors

by BlueDragon2010 » Sat Feb 15, 2014 4:28 pm
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 Patrick_GMATFix » Sat Feb 15, 2014 5:09 pm
To strengthen an argument, the right answer will make the argument more convincing by doing one of the following:

(1) adding supporting evidence. Eg: new info that will make a pretzel stand outside the art museum less profitable
(2) affirming assumptions. Eg: info that indicates that traffic outside the art museum is not much better than traffic outside City Hall (where the vendor is currently located)
(3) eliminating alternative conclusions that could be drawn from the same premise.

In this case, it's likely that the right answer will leverage what we know about the traffic and sales rate at the current location (City Hall). The full solution below is taken from the GMATFix App.

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by Abhishek009 » Sun Feb 16, 2014 7:50 am
BlueDragon2010 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.
Opening pretzel stand outside the museum is prohibitively expensive , after all taxes a vendor needs to sell on average 25 pretzels per hour to suffer no loss.

Outside Museum - 15 pretzels per hour , hence I would suffer loss if I start a stand outside the museum.

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.

Out of scope.

(B) Pretzel vendors who operate stands outside the art museum were making a profit before the imposition of the new license fee.

Out of scope.

(C) The number of pretzel stands outside the art museum is no greater than the number of pretzel stands now outside city hall.

Irrelevant and out of scope.

(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.

Out of scope.

(E) Fewer people passing the art museum than passing city hall are likely to buy pretzels.

True , cost of pretzels will be higher near the art museum and people would not prefer to buy pretzels there...

Hence IMO [spoiler](E)[/spoiler]
Abhishek
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