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Section - 2 Problem - 3

Expert replies
by camitava » Wed Nov 28, 2007 4:46 am
Again one goes -

Sales taxes tend to be regressive, affecting poor people more severely than wealthy people. When all purchases of consumer goods are taxed at a fixed percentage of the purchase price, poor people pay a larger proportion of their income in sales taxes than wealthy people do.
It can be correctly inferred on the basis of the statements above that which of the following is true?
(A) Poor people constitute a larger proportion of the taxpaying population than wealthy people do.
(B) Poor people spend a larger proportion of their income on purchases of consumer goods than wealthy people do.
(C) Wealthy people pay, on average, a larger amount of sales taxes than poor people do.
(D) The total amount spent by all poor people on purchases of consumer goods exceeds the total amount spent by all wealthy people on consumer goods.
(E) The average purchase price of consumer goods bought by wealthy people is higher than that of consumer goods bought by poor people.

OA after some discussion ...
Correct me If I am wrong


Regards,

Amitava
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Source: — Critical Reasoning |

by samirpandeyit62 » Wed Nov 28, 2007 5:06 am
B IMO coz it is supported by all the premises in the arguement.
Regards
Samir
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by camitava » Thu Nov 29, 2007 2:08 am
Thanks Samir! You have pointed out a point here. Yop! All the comparisons except B are between population (A) and amount of purchase (D). By the way, we can initially easily eliminate C and E because they are nor at all in the sync with the arguments. So the option left is - B. And it is also comparing between the income of poor and rich people - the one which is quite supportive according to the argument.
Correct me If I am wrong


Regards,

Amitava
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by camitava » Thu Nov 29, 2007 2:11 am
Sorry forgot to mention the OA. Its B.
Correct me If I am wrong


Regards,

Amitava
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by samirpandeyit62 » Thu Nov 29, 2007 2:37 am
Thanks Amitava, getting a CR Q correct gives me more pleasure than getting 10 math questions right :D :lol: .
Regards
Samir
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by mayonnai5e » Thu Nov 29, 2007 11:45 am
samirpandeyit62 wrote:Thanks Amitava, getting a CR Q correct gives me more pleasure than getting 10 math questions right :D :lol: .
Nice work Samir!!
https://www.beatthegmat.com/my-blog-erro ... t4899.html
550 =\ ...560 =\... 650 =) ...570 =( ...540 =*( ...680 =P ... 670 =T ...=T... 650 =T ...700 =) ..690 =) ...710 =D ...GMAT 720 DING!! ;D

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by samirpandeyit62 » Thu Nov 29, 2007 10:45 pm
hey thanks mayonnai5e!
Regards
Samir
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by khanshainur » Tue May 10, 2016 3:41 am
so, i think answer B then other option)
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