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80% of the government revenue from the tobacco sector comes from cigarettes. But only 15% of the tobacco users

Expert replies
by BTGmoderatorDC » Thu Jan 12, 2023 3:11 am

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Answers

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B

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E

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Difficulty

80% of the government revenue from the tobacco sector comes from cigarettes. But only 15% of the tobacco users constitute cigarette smokers because of the high tax rates levied on cigarettes. Beginning last year, with the aim to increasing this tax base, the government lowered the taxes on cigarettes by 8%. At the end of last year, the tax collected from the sale of cigarettes remained same as that of the year before. Clearly, more tobacco users have shifted to smoking cigarettes.

Which of the following is an assumption on which the argument depends?

(A) While reducing the taxes, the government has ensured that there is an adequate program to make the users aware of the hazards of smoking.
(B) The cost levied by tobacco companies for each cigarette was not significantly higher last year than they had the year before.
(C) The average number of cigarettes smoked per smoker did not decrease significantly last year than the year before.
(D) The revenue from advertising on cigarette cartons was higher last year than the year before.
(E) Tobacco used in any form including cigarettes gives the same experience that a tobacco user expects and pays for.


OA B

Source: e-GMAT
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Source: — Critical Reasoning |