LSAT 107 | Section 1 | Logical Reasoning: Q9

LR Question 9 Explanation

QUESTION TEXT: Jean: Our navigational equipment sells for $1,100 and…

QUESTION TYPE: Point at Issue

ARGUMENTS: Jean argues that a low cost model would allow increased sales and continued domination of the high-end market. She notes that the company’s low-end competitors sell more units.

Tracy disagrees. She thinks that a low-cost model would hurt the reputation of the high cost model, hurting overall sales.

ANALYSIS: Jean thinks this is a good idea all around. Tracy is worried about the high cost market. She thinks competitors will gain the upper hand and the company will no longer dominate that market.

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1. Neither of them mentions which market has more profit. Jean might think that high-cost has more profit. 
2. Tracy doesn’t think that consumers will buy the company’s low cost model instead of the high cost model. She thinks other high cost competitors will steal customers instead. 
3. Very tempting. But technically Jean didn’t say that the company could dominate the low cost market. And Tracy didn’t say how she thought the low cost product would sell.
4. CORRECT. Jean clearly says that the company will continue to dominate high cost. Tracy thinks competitors will gain an advantage in high cost and sales will drop. 
5. Tracy doesn’t say how she thinks low cost sales will be.