Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa[/size]. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household's budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.
In the argument above, which of the following statements best describes the role played by each portion in boldface?
The first is evidence that the microeconomist provides in support of a certain prediction; the second is that prediction.
The first is a generalization that the microeconomist accepts as true; the second is a consequence that follows from that generalization.
The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.
The first acknowledges a consideration against the main conclusion of the microeconomist; the second is that conclusion.
The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.[/size]
OA follows...
OA is C
Can anyone offer any tips and an approach for solving bold face questions. This seems to be a more relatively new area of GMAT and I dont see a whole lot of material by any test prep companies either to handles these kind of questions.
I am getting all my questions wrong.
Any resource material, that you can recommend for learning this will also be useful.
Please help.![/size][/size]
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Strategy for BOLD FACE questions ? Anyone? - MGMAT TOUGHIE
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garima99
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Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa[/size]. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household's budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.
The first statement is conclusion and the second statement is the explanation for counter conclusion..
The first statement is conclusion and the second statement is the explanation for counter conclusion..
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garima99
- Master | Next Rank: 500 Posts
- Posts: 217
- Joined: Tue May 31, 2011 9:42 pm
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kaps786 wrote:Microeconomist: Usually, the relationship between the price of a good and the demand for that product is negative: when the price goes up, the quantity demanded goes down, and vice versa[/size]. However, a dramatic increase in the price of basic foods, such as bread or milk, is likely to increase rather then decrease their consumption among the low-income households. Since the consumption of these products is relatively stable, an increase in their price will simply lower the proportion of the household's budget spent on other, more expensive food items, such as meat or fish. In an effort to maintain the same calorie intake, the household will consume even more of the basic foods that typically remain a cheaper way to satisfy hunger even after an increase in their prices.
In the argument above, which of the following statements best describes the role played by each portion in boldface?
The first is evidence that the microeconomist provides in support of a certain prediction; the second is that prediction.- the first is not an evidence..Eliminate
The first is a generalization that the microeconomist accepts as true; the second is a consequence that follows from that generalization. first and second are not saying the same thing.Eliminate
The first is a pattern of cause and effect that the microeconomist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.
The first acknowledges a consideration against the main conclusion of the microeconomist; the second is that conclusion.-second is not a conclusion but only support for counter conclusion.Eliminate
The first is a pattern of cause and effect that the microeconomist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.- The microeconomist are not saying that this is repeated[/size]
OA follows...
OA is C
Can anyone offer any tips and an approach for solving bold face questions. This seems to be a more relatively new area of GMAT and I dont see a whole lot of material by any test prep companies either to handles these kind of questions.
I am getting all my questions wrong.
Any resource material, that you can recommend for learning this will also be useful.
Please help.![/size][/size]
