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Director
Joined: 16 May 2014
Posts: 592
Given Kudos: 0
GRE 1: Q165 V161
GRE RC Challenge #1-Green Peas Grocery Store in the remote
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04 Nov 2014, 10:41
04 Nov 2014, 10:41
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Expert Reply
The Green Peas Grocery Store in the remote wealthy enclave of Luxville charges more than the Green Peas Grocery Store in Oak City charges for the same items. Clearly, on any given item, the Green Peas grocery franchise is taking advantage of its location in Luxville to reap higher profits on that item.
1)In evaluating the argument, it would be most useful to compare
A) the selection of specialty items in the Oak City location with the selection of specialty items in the Luxville location
B) the cost of transporting merchandise to the Oak City location with the comparable cost to the Luxville location
C) the average cost of the same or comparable items at other grocery stores in Oak City with the average cost at other stores in Luxville
D) The percent of average household income spent on groceries in Oak City with the comparable percentage in Luxville
E) The cost of these items in Oak City and in Luxville with the cost at other Green Peas stores throughout the state
1)In evaluating the argument, it would be most useful to compare
A) the selection of specialty items in the Oak City location with the selection of specialty items in the Luxville location
B) the cost of transporting merchandise to the Oak City location with the comparable cost to the Luxville location
C) the average cost of the same or comparable items at other grocery stores in Oak City with the average cost at other stores in Luxville
D) The percent of average household income spent on groceries in Oak City with the comparable percentage in Luxville
E) The cost of these items in Oak City and in Luxville with the cost at other Green Peas stores throughout the state
Director
Joined: 16 May 2014
Posts: 592
Given Kudos: 0
GRE 1: Q165 V161
Re: GRE RC Challenge #1
[#permalink]
04 Nov 2014, 10:42
04 Nov 2014, 10:42
Expert Reply
Answer & Explanation
Show: :: Answer
Answer: (B)
The argument contends that Green Peas is taking advantage of its location in a rich neighborhood. Notice the word 'remote' though. One important consideration is transporting costs. If it costs a lot of money to ship to Luxville, then the Green Peas store is justified in charging more there. (B) effectively takes care of that objection. Unless (B) is known, the argument is open to this objection.
(A) is incorrect because the argument relates to all items, not just specialty ones.
(C) The focus of the argument is Green Peas, not other stores. Yet a possible line of reasoning is that if we compare the prices of similar goods at stores in Luxville to the prices of those in Oak City, we can see if Green Peas in Luxville is overcharging. But imagine the stores in Luxville all charge more for the same goods than stores in Oak Town. Does that directly address the conclusion that Green Peas is taking advantage of its location? All stores in Luxville may simply have to pay more for shipping (see (B)); they are not trying to overcharge the wealthy.
(D) is wrong since household income does not relate to the argument.
(E), like (D) and (C), is out of scope.
The argument contends that Green Peas is taking advantage of its location in a rich neighborhood. Notice the word 'remote' though. One important consideration is transporting costs. If it costs a lot of money to ship to Luxville, then the Green Peas store is justified in charging more there. (B) effectively takes care of that objection. Unless (B) is known, the argument is open to this objection.
(A) is incorrect because the argument relates to all items, not just specialty ones.
(C) The focus of the argument is Green Peas, not other stores. Yet a possible line of reasoning is that if we compare the prices of similar goods at stores in Luxville to the prices of those in Oak City, we can see if Green Peas in Luxville is overcharging. But imagine the stores in Luxville all charge more for the same goods than stores in Oak Town. Does that directly address the conclusion that Green Peas is taking advantage of its location? All stores in Luxville may simply have to pay more for shipping (see (B)); they are not trying to overcharge the wealthy.
(D) is wrong since household income does not relate to the argument.
(E), like (D) and (C), is out of scope.
gmatclubot
Re: GRE RC Challenge #1 [#permalink]
04 Nov 2014, 10:42
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