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OG 13 Ques 54- Restrictions on advertising legal services

Expert replies
by pareekbharat86 » Tue Oct 01, 2013 8:18 pm
The fewer restrictions there are on the advertising of legal services, the more lawyers there are who advertise their services, and the lawyers who advertise a specific service usually charge less for that service than the lawyers who do not advertise. Therefore, if the state removes any of its current restrictions, such as the one against advertisements that do not specify fee arrangements, overall consumer legal costs will be lower than if the state retains its current restrictions.
If the statements above are true, which of the following must be true?
(A) Some lawyers who now advertise will charge more for specific services if they do not have to specify fee arrangements in the advertisements.
(B) More consumers will use legal services if there are fewer restrictions on the advertising of legal services.
(C) If the restriction against advertisements that do not specify fee arrangements is removed, more lawyers will advertise their services.
(D) If more lawyers advertise lower prices for specific services, some lawyers who do not advertise will also charge less than they currently charge for those services.
(E) If the only restrictions on the advertising of legal services were those that apply to every type of advertising, most lawyers would advertise their services.


I have faced this one not only in OG, but in GMATPrep too. I never seem to understand the logic of this paragraph. Please advise. Thanks!
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Source: — Critical Reasoning |

by theCodeToGMAT » Tue Oct 01, 2013 8:35 pm
According to me, the Answer is [spoiler]{C}[/spoiler].. this answer choice clearly marks a big constraint on the success of the plan.. So it "must" be true.

What is the OA?
R A H U L
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by pareekbharat86 » Tue Oct 01, 2013 8:57 pm
theCodeToGMAT wrote:According to me, the Answer is [spoiler]{C}[/spoiler].. this answer choice clearly marks a big constraint on the success of the plan.. So it "must" be true.

What is the OA?
The OA is indeed C, but it would be helpful if you explained the logics involved here. There is an inverse proportionality in no. of restrictions and no. of advertisements posted. But how does that lower the legal costs?[/spoiler]
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by theCodeToGMAT » Tue Oct 01, 2013 9:16 pm
pareekbharat86 wrote: The OA is indeed C, but it would be helpful if you explained the logics involved here. There is an inverse proportionality in no. of restrictions and no. of advertisements posted. But how does that lower the legal costs?[/spoiler]
Question Stem says "remove restrictions --> consumer cost will be lower"

There is a big assumption here, what if lawyers don't advertise at all.

Consider a case, out of 1000 lawyers currently 10 advertise:

Each lawyer of 10 Lawyers catergory = Rs 5,000/case
Other 990 Lawyers charger = Rs 10,000/case

Government is assuming that if it removes the restriction then these 990 will also advertise & the costing would be reduced.

So, for the success of Government's plan.. its assumption should be correct

The Assumption is stated in Option [spoiler]{C}[/spoiler]
restrictions removed --> lawyers advertise.... therefore, cost reduces.
R A H U L
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by pareekbharat86 » Tue Oct 01, 2013 9:36 pm
theCodeToGMAT wrote:
pareekbharat86 wrote: The OA is indeed C, but it would be helpful if you explained the logics involved here. There is an inverse proportionality in no. of restrictions and no. of advertisements posted. But how does that lower the legal costs?[/spoiler]
Question Stem says "remove restrictions --> consumer cost will be lower"

There is a big assumption here, what if lawyers don't advertise at all.

Consider a case, out of 1000 lawyers currently 10 advertise:

Each lawyer of 10 Lawyers catergory = Rs 5,000/case
Other 990 Lawyers charger = Rs 10,000/case

Government is assuming that if it removes the restriction then these 990 will also advertise & the costing would be reduced.

So, for the success of Government's plan.. its assumption should be correct

The Assumption is stated in Option [spoiler]{C}[/spoiler]
restrictions removed --> lawyers advertise.... therefore, cost reduces.
Hmm...I guess I got this one now. I have been thinking like a cost accountant. How can extra advertisement costs be absorbed by lower fee? Probably, I should not influence my judgements by extraneous factors, but just focus on the assumptions stated in the passage. Thanks.
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