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GMAT Prep Q

Expert replies
by rohit9359 » Fri May 01, 2009 5:54 pm
Hi Guyz,

Please refer the attached. OA is [spoiler](A)[/spoiler]. Could you please explain?

Thanks much,
Rohit.
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Source: — Critical Reasoning |

ans

by kartik1979 » Fri May 01, 2009 7:56 pm
was a difficult question - used elimination again

First of all D and E are out , E is out becaause dosnt explain the increase in per capita expenditure , it says expensive drugs were out so according to if i can make a conclusion per capital expenditure should fall not rise

B is out because - it states pop of V has increased ? so nothing
it can lead to conclusion that consumption would increase and price is fixed hence per capital expenditure should fall not rise ( Can go in any direction hence eak argument )

We are left with A and C

C says even after the price freeze companies can maintain profit , ok
what has profit got to do with per capita expenditure nothing


Hence A

means since govt has put a restriction on price of existing drugs company would come out with new set of drugs where they can determine the price hence rise in per capita expenditure
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by ketkoag » Sun May 03, 2009 10:45 pm
here we have to weaken the ministry's argument i.e per capita expenditure on prescribed drugs decreases

B : strengthen
c: not related
d: not related
e: strengthen
a: weaken coz manufacturer can produce new product with high prices. so manufact..... is not increasing the price and per capita expenditure is increasing.
hence A is the answer.
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by samanthaJ79 » Sun May 15, 2016 6:18 am
I agree with you guys. I also think that the right answer is A
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