Sorry Sir,

I did not get what you meant.

Could you please elaborate better ?'


regards

Can someone pls explain Ques 2?

As quoted in the passage,

For example, a manufacturer might be willing to sell 7,000 sprockets if each one sells for $ 0.45 but would be willing to sell substantially more sprockets, perhaps 12,000, for a higher price of $ 0.82.

Meaning, If prices increase. Manufacturer is willing to offload as much as he can to get maximum profit. Right?
So answer Should be A as per the passage. Am i analysing the passage in a wrong manner?

Although it is an imperfect model for describing a complex market, the theory of supply and demand is a reasonably accurate method of explaining, describing, and predicting how the quantity and price of goods fluctuate within a market.

The theory after is STILL a good method


Economists define supply as the amount of a particular good that producers are willing to sell at a certain price.

The supply= the amount, physically, the producers want to sell for a certain price. samsung produces phones to sell for a certain price

For example, a manufacturer might be willing to sell 7,000 sprockets if each one sells for $ 0.45 but would be willing to sell substantially more sprockets, perhaps 12,000, for a higher price of $ 0.82.

Basically, the sentence suggests that iF the selling will be any good, then a more production would be sold for a higher price bracket or range

Conversely, demand represents the quantity of a given item that consumers will purchase at a set price; in the most efficient market, all buyers pay the lowest price available, and all sellers charge the highest price they are able.

The is the crossroad where supply and demand meet

The intersection of these occurrences is graphically represented in supply and demand curves that show the prices at which a product becomes too expensive or too readily available.

In concrete the above sentence shows us what happens when the two curves intersect. BTW is not really so in economic terms but we take for granted for the sake of the passage


Which one of the following best expresses the main idea of the passage?

1) explaining why buyers in a given market tend to seek the lowest price on available goods

we do not have a giving market (phones, cars and so on) but a generalization

2) offering a dissenting perspective on an obsolete economic model

no, the model is still good

3) persuading readers that the model of supply and demand is the best method for understanding market forces

the best model is too extreme as word. the passage says that is STILL good. not the best

4) providing an explanation of the two primary elements of an economic model and how they intersect

Basically this is the answer: how the theory works in general;

5) analyzing the fluctuation of supply and demand within a market

Not really what goes up or down specifically


If the producer of sprockets nearly doubles its prices as described in the passage, it follows that

1) buyers in the market will be likely to purchase more of the sprockets being sold.

not stated. simply we do not enough info to say that

2) the price of sprockets will continue to increase.

we do not know. we have just an example about more products sold for a higher price

3) buyers in the market will be likely to purchase fewer of the sprockets being sold.

yes true. we have : in the most efficient market, all buyers pay the lowest price available

in an efficient market I will be inclined to pay the lowest price. Therefore, if a product is sold for a higher price I will buy that one similar for a lower price.

suppose X is sold for $10. I will tend to buy Y for a lower price. Assuming that Y as similar characteristics and can substitute X for all the necessities I need

Use

GRE Reading Comprehension - The Definitive Strategies Guide (2022)


Hope this helps

Thank you so much!