PT52.S3.Q22 - most economists believe that

nathanieljschwartznathanieljschwartz Alum Member
edited January 2018 in Logical Reasoning 1723 karma

Hey yall, im back!!
Just wanna make sure im understanding AC E
[E] says that: "an increase in demand for consumer product is compatible with an increase in demand for a competing product."
Here goes my thought process:
Since the price for domestic wine dropped, people started buying tons of it and it was sold out. Since there was no domestic wine left,people started buying the imported wine, this lead to an increase in sales of imported wine. Thoughts?

https://7sage.com/lsat_explanations/lsat-52-section-3-question-22/

Comments

  • EvetteCeeEvetteCee Alum Member
    224 karma

    I understood E as saying that: Domestic wine sales can go up (because of the reduced price) while the competing imported wine sales do too (for any random reason).

  • pioneer321pioneer321 Free Trial Member
    328 karma

    Oh man, I remember this question. The way I went about it is that the first four answers are out of score and can be eliminated pretty quickly, giving us E by POE. Now for the correct answer, note that the first sentence in the prompt says that demand (not necessarily position relative to competitors) will be stimulated. From this we can expect that by lowering the price of wine, the demand for it increased. We know from the prompt that imported wine sales went up too, so it's reasonable to say that the demand for imported wines grew also. Ac (E) ties these two parts together by saying they are compatible, which is all that's needed to reconcile the stated beliefs and consequences. Hope this helps.

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