LSAT 107 – Section 1 – Question 09

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Question
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Type Tags Answer
Choices
Curve Question
Difficulty
Psg/Game/S
Difficulty
Explanation
PT107 S1 Q09
+LR
Point at issue: disagree +Disagr
Net Effect +NetEff
Value Judgment +ValJudg
A
6%
159
B
2%
157
C
7%
158
D
84%
165
E
1%
158
136
146
157
+Medium 147.515 +SubsectionMedium

Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. We should add a low-cost model, which would allow us to increase our overall sales while continuing to dominate the high end.

Tracy: I disagree. Our equipment sells to consumers who associate our company with quality. Moving into the low-cost market would put our competitors in the high-cost market on an equal footing with us, which could hurt our overall sales.

Speaker 1 Summary
Jean concludes that we should add a low-cost model of our navigational equipment. This is because it would allow us to increase our overall sales while continuing to dominate the high end.

Speaker 2 Summary
Tracy concludes that we shouldn’t add a low-cost model. This is because adding a low-cost model would allow competitors to be on an equal footing in the high-cost market, which might hurt our overall sales.

Objective
We’re looking for a point of disagreement. The speakers disagree about whether we should add a low-cost model. They also disagree about whether adding a low-cost model would still allow us to dominate the high end market.

A
There is a greater potential for profits in the low-cost market than there is in the high-cost market.
Neither speaker expresses an opinion. They do have opinion about whether we can increase our overall sales by adding a low-end model, but that doesn’t imply an opinion about whether there’s more money to be made in the low-end market vs. the high-end market.
B
The proposed cheaper model, if it were made available, would sell to customers who would otherwise be buying the company’s present model.
Neither speaker expresses an opinion. Nobody says anything suggesting a belief about whether low-end purchasers would have purchased the current model.
C
The company could dominate the low-cost market in the same way it has dominated the high-cost market.
Jean doesn’t express an opinion. Although she thinks we could increase our sales by selling a low-cost model, that doesn’t mean she thinks we can dominate the low-cost market. Maybe she thinks we can make a small amount of additional money.
D
The company would no longer dominate the high-cost market if it began selling a low-cost model.
The speakers disagree. Jean thinks we can continue to dominate the high end even after selling a low-cost model. Tracy thinks selling a low-cost model would put our competitors on an equal footing with us in the high-cost market. That means we wouldn’t dominant anymore.
E
Decreased sales of the high-cost model would result in poor sales for the proposed low-cost model.
Neither expresses an opinion. Jean doesn’t mention decreased sales of the high-cost model. Tracy suggest our sales might decrease in the high-end market by introducing a low-cost model, but doesn’t discuss how this would affect sales of a low-cost model.

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