PT8.S1.Q9

SECTION 1 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

SECTION 2 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26

SECTION 3 · rc

PASSAGE 1
Question 1 Question 2 Question 3 Question 4 Question 5 Question 6

PASSAGE 2
Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13

PASSAGE 3
Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20

PASSAGE 4
Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

SECTION 4 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

PrepTest 8 - Section 1 - Question 9

Question

Explanation

Analytics

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Complaints that milk bottlers take enormous markups on the bottled milk sold to consumers are most likely to arise when least warranted by the actual spread between the price that bottlers pay for raw milk and the price at which they sell bottled milk. ███ ██████████ █████ ████ ███ ████████████ █████ ██████ ███ █████ █████ █████████ ████ █████ ██████ ███████ ███ ██████ █████ ██ ███ ███ ████ ████ ████████ ███ ████ █████ ████████ ████ ███ ████████ █████ ██ ███████ ███ ███████████ ███████ ███ ████████ ████████ █████████████ ██ ███ ██████ ██████ ████ ███ ████████ █████ ██ ████████ ████████ ███ ███████ ███ █████████

Identify a Statement that Must Be True

Today we're learning about the economics of milk bottling. To correctly determine which answer choice must be true, we should start by fully understanding the facts given in the stimulus. This is what we know:

(1) consumer complaints about milk bottlers' markups tend to be most common when milk bottlers actually have a lower margin;
(2) complaints occur when the price of bottled milk increases;
(3) increases in the price of bottled milk are usually because of increases in the price of raw milk;
(4) when the raw-milk price is rising, milk bottlers have the smallest proportional markup;
(5) when the raw-milk price is falling, milk bottlers have the largest proportional markup.

The correct answer will propose a statement that necessarily must be true as a result of the facts we're given. This could be an inference made from taking two or more facts together, or it could be a logical consequence of a single fact. In either case, we can safely eliminate any options that rely on new information not given in the stimulus, or that otherwise could be false.

Analysis by AlexandraNash

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9.

If all of the statements █████ ███ █████ █████ ███ ██ ███ █████████ ████ ████ ██ ████ ██ ███ █████ ██ █████

a

Consumers pay more ███ ███████ ████ ████ ████████ ██████ ███ ███████ ████ ████ █████ ██████ ███ ███████

The stimulus only discusses the proportional markups on bottled milk at different times. We don't have enough details on the absolute price consumers pay—(A) could be true, but it could be false.

b

Increases in dairy ██████████ ████ ██ █████████ ████ ███ █████████ ███ ██████ ██ ██ ██████████

We don't know anything about dairy farmers' costs and pricing decisions, only about how milk bottlers respond to raw-milk price changes. (B) brings in new information, so we can't say it must be true.

c

Milk bottlers take █████████████ ███████ ███████ ██ ███████ ████ ████ ███ █████ ██ ███ ███ ██ ████████ ██████ ████ ████ ██ ██ ████ ███ ██ ████████ ███████

The stimulus only tells us about prices when the raw-milk cost is rising or falling. We don't have any information about milk bottlers' pricing decisions when raw-milk costs are stable, so (C) could be true or could be false.

d

Milk bottlers generally ██ ███ ███████ ██ █ ████████ ██ ████████ ██████ ██ ████████████ ███████████████ ████████ ███ █████ ██ ███ ███████ ████ ████ █████

According to the stimulus, milk bottlers have a higher proportional markup when the raw-milk price is falling. If they immediately lowered prices proportionally to the raw-milk price, this would be impossible. That's why (D) must be true: it's a logical consequence of a fact in the stimulus.

e

Consumers tend to ████████ ████ █████ ███ █████ ████ ███ ███ ███████ ████ ████ █████ ███████ ███ ███████ █████ ████████ ████████

We don't know anything about dairy farmers' profits, just about milk bottlers' profits. (E) relies on new information about dairy farmers; the stimulus doesn't require (E) to be true.

Difficulty

Question

53% of people who answer get this correct

This is a very difficult question.

CURVE

Score of students with a 50% chance of getting this right

25% 150

162

75% 175

Analysis

Question Stem Tags

Must be true

Must be true

Stems that ask which answer choice "must be true." Related to Inference and MSS, but correct answers require 100% support with no assumptions of any kind.

Answer Popularity

Popularity Avg. score

a

11%

155

b

4%

159

c

20%

161

d

53%

166

e

13%

163

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