Self-study
The wholesale price of one bottle of Veritas Vineyards wine, always a profitable brand, is the same today as it was in 1991. ███ ████████████ ██████ ██ █████ ██ ███ █████████ █████ █████ ███ █████ ██ █████████ ███ ███████ █████ █████ ███████ ███ ████ ██ ███ ██████████ ██ ███ █████ ███████ ██████████ ███ ██ ███ ██████ ███████ ████ ███ ███ ████████ ███ ██ ███ █████ ██ ███ ██████████ ██ █████████ █ ██████ ██ ███████ █████████ ████ ████ ████████ █████████ ██████ ████ ██ ███ ██████ █████ ████ ██████ █████ ██ ████ █████ ██ ████ ███ ██ █████
Summary
The wholesale price of one bottle of Veritas Vineyards wine is the same today as it was in 1991. The winegrower’s profit is equal to the wholesale price minus the cost of the glass bottles and the corks. Between 1991 and today, all of the costs to produce a bottle of Veritas Vineyards wine have remained constant, except that of the corks. Corks cost twice as much today as they cost in 1991.
Notable Valid Inferences
Each bottle of Veritas Vineyards wine sold today generates less profit than each bottle sold in 1991. We know this because the cost of corks has gone up, all other costs have remained the same, and the wholesale price has stayed the same.
10.
If the statements above are █████ █████ ███ ██ ███ █████████ ████ ████ ██ ████ ██ ███ █████ ██ █████
a
The number of ███████ ██ ███████ █████████ ████ ████ ███ ████████ █████████ ███████ ████ ███ ███ ████████
Could be false. We have no information in the stimulus about the number of bottles being sold.
b
Each bottle of ███████ █████████ ████ ████ ██ ████ █████ ██████ ███ ██████████ ████ ██████ ████ ███ ████ ██████ ████ ██ █████
Must be true. We can combine the facts that profit is a function of the wholesale price minus the cost of bottles and corks, corks today are twice as expensive, and the wholesale price is the same today as it was in 1991.
c
The cost to ███ ████ █████ ██ █████████ ███ █████ ████ ██ ███████ ██ ███████ █████████ ████ ███ █████████ █████ █████
Could be false. We have no information in the stimulus about the costs to cork makers. We know the cost of a cork to a winegrower is higher today, but that doesn't reveal the cost to the cork maker.
d
The aggregate profit █████████ ██ ███ ████████████ █████ ██ ███████ █████████ ████ ████ ████ ██ ███████ ████ ███ █████████ ██████ █████████ ██ █████
Could be false. Although we know that each bottle sold today brings less profit than each bottle sold in 1991, this doesn't reveal anything about the aggregate profit. Aggregate profit is the profit of each bottle sold multiplied by the total number of bottles sold. We have no information in the stimulus about the number of bottles sold.
e
The cost of ████ ████ ████ ██ ████████ ███████ █████████ ████ ██ █████████ ███████ ████ ███ ████ ██ ████ █████ ██████ ███████
Could be false. We have no information about the relative cost of corks and bottles. We cannot assume that just because corks have doubled in price that means corks are more expensive than bottles. We know only that corks today are twice as expensive as corks in 1991.