Lesson: General Strategy

Comment on General Strategy

Hi, Brent.Could you please give a direct link to Critical Reasoning module, as I have some problems with SlidesShare web-site.
gmat-admin's picture

Are you asking about the Critical Reasoning VIDEO module?
If so, here it is: https://www.gmatprepnow.com/module/gmat-critical-reasoning

If you're looking for a link to the Critical Reasoning FLASHCARDS, you can find them here: http://www.gmatprepnow.com/sites/default/files/GMAT%20Critical%20Reasoni...

Cheers,
Brent

Hi Brent, I got this question right, but I´d like to hear your strategy on this sort of question please? And what level could this question be? Thank you!! x

Because of steep increases in the average price per box of cereal over the last 10 years, overall sales of cereal have recently begun to drop. In an attempt to improve sales, one major cereal manufacturer reduced the wholesale prices of its cereals by 20 percent. Since most other cereal manufacturers have announced that they will follow suit, it is likely that the level of overall sales of cereal will rise significantly.

Which of the following would it be most useful to establish in evaluating the argument?

(A) Whether the high marketing expenses of the highly competitive cereal market led to the increase in cereal prices

(B) Whether cereal manufacturers use marketing techniques that encourage brand loyalty among consumers

(C) Whether the variety of cereals available on the market has significantly increased over the last 10 years

(D) Whether the prices that supermarkets charge for these cereals will reflect the lower prices the supermarkets will be paying the manufacturers

(E) Whether the sales of certain types of cereal have declined disproportionately over the last 10 years
gmat-admin's picture

PREMISE: Increased cereal prices CAUSED the drop-in cereal sales.
PREMISE: Most cereal manufacturers will reduce WHOLESALE prices by 20%
CONCLUSION: Overall sales of cereal will increase

While reading the passage, the word WHOLESALE jumped out at me, and I was able to see that there will be no change in cereal sales if the 20% decrease in WHOLESALE prices is not reflected in the RETAIL prices at supermarkets.
So, answer choice D popped out for me.

That said, if we don't see the importance of the word WHOLESALE, we can still answer the question.
For each answer choice, we must ask, "Will the answer to this question help me determine whether it's reasonable to predict an increase in overall sales of cereal?"

(D) Whether the prices that supermarkets charge for these cereals will reflect the lower prices the supermarkets will be paying the manufacturers
If it's the case that supermarkets DO, indeed, charge less for the cereals, then it seems quite LIKELY that overall sales of cereal will increase.
If it's the case that supermarkets DON'T charge less for the cereals, then it's UNLIKELY that overall sales of cereal will increase.
So, answering the question posed in answer choice D will definitely help us evaluate the conclusion.

As for level of difficulty, I would say this is a 500-level question.

Cheers,
Brent

Office Hours

On December 20, 2023, Brent will stop offering office hours. 

Change Playback Speed

You have the option of watching the videos at various speeds (25% faster, 50% faster, etc). To change the playback speed, click the settings icon on the right side of the video status bar.

Have a question about this video?

Post your question in the Comment section below, and a GMAT expert will answer it as fast as humanly possible.

Free “Question of the Day” emails!