Ishmeet7 wrote:
Hey. I am not able to reject D. And none of the explanations are (imo) doing enough to reject it. Can someone/some expert please break this down and help me? I get why A is a good option, but I fail to see how it is better than D.
Primarily because if they don't assume taxes worth 10% are there, why would they even launch it in the first place?
You take an action ONLY because something is missing. a 10% tax was not there. HENCE, they looked at increasing it to 10%...
Am I missingsomething?
Let’s revisit the argument and consider some things we know about cigaretteprices:
- We know that the average price of a pack of cigarettes in Coponia is currently 90cents.
- We also know that Coponia is about to raise taxes on cigarettes by 9 cents per pack.
What we DON’T know is how much (if any) tax is ALREADY included in the existing 90-cent average pack price. Taxes could account for a relatively modest chunk of that 90 cents -- say, 2.7 cents (3% of the total pack price). Or taxes could
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Statistics : Posted by GMATNinja • on 16 Jun 2008, 17:34 • Replies 36 • Views 55526
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