In the year following an eight-cent increase in the federal

This topic has expert replies
Senior | Next Rank: 100 Posts
Posts: 42
Joined: Fri Jul 03, 2009 9:52 am
Location: San Jose, CA
Thanked: 2 times
In the year following an eight-cent increase in the federal tax on a pack of cigarettes, sales of cigarettes fell ten percent. In contrast, in the year prior to the tax increase, sales had fallen one percent. The volume of cigarette sales is therefore strongly related to the after-tax price of a pack of cigarettes.

Which of the following, if true, could most strengthen the argument above?

(A) During the second year after the tax increase, cigarette sales increased by a significant amount.
(B) The information available to consumers on the health risks of smoking remained largely unchanged in the period before and after the tax increase.
(C) Most consumers were unaware that the tax on cigarettes was going to increase.
(D) During the year following the cigarette tax increase, many consumers had less income, in inflation-adjusted dollars, than they had had in the previous year.
(E) During the year after the tax increase, there was a greater variety of cigarettes on the market than there had been during the previous year.

Can you explain, why is B better than D?

Legendary Member
Posts: 1337
Joined: Sat Dec 27, 2008 6:29 pm
Thanked: 127 times
Followed by:10 members

by Night reader » Sun Feb 13, 2011 1:08 am
Actually B is the only choice here after OPE A-C-E and finally your inquired D
We want to make sure that consumers had exposed less demand after tax increase because of tax increase.
there could be many other causes too... D says low income prevents consumers from buying cigarettes after tax increase, but not the tax increase itself --> here we are dealing with effect (little income) to be cause of another effect? But how we know that this effect (low income) was made to achieve the other effect (low demand for cigarettes=sales of cigarettes)? :) B helps here, as we know at least the consumers had the same knowledge about cigarettes as they had had before tax increase. Being in the same condition they reject buying cigarettes because of tax increase itself.

hope this helps.
rveeraga wrote:In the year following an eight-cent increase in the federal tax on a pack of cigarettes, sales of cigarettes fell ten percent. In contrast, in the year prior to the tax increase, sales had fallen one percent. The volume of cigarette sales is therefore strongly related to the after-tax price of a pack of cigarettes.

Which of the following, if true, could most strengthen the argument above?

(A) During the second year after the tax increase, cigarette sales increased by a significant amount.
(B) The information available to consumers on the health risks of smoking remained largely unchanged in the period before and after the tax increase.
(C) Most consumers were unaware that the tax on cigarettes was going to increase.
(D) During the year following the cigarette tax increase, many consumers had less income, in inflation-adjusted dollars, than they had had in the previous year.
(E) During the year after the tax increase, there was a greater variety of cigarettes on the market than there had been during the previous year.

Can you explain, why is B better than D?