Q17 - In order to save money

[M.M.]

Hey Liu,

So this is an inference question. On an inference question, the correct answer has to be true based on the information given. Be careful of any answer choice that makes a logical leap that you can't actually make. For example:

Fact: Tommy goes to the movies six days a week
Wrong inference: Tommy likes movies
Wrong inference: Tommy seems a lot of different movies
Wrong inference: Tommy goes to the movies on Tuesday
Correct inference: Tommy spends at least some part of one weekend day at the movies every week

In this case, we are told that stores with coupons charge more for their products, because they have to compensate for the expense of making them.

(A) This seems logical (like my "Tommy likes movies") example, but it actually isn't. Redeeming coupons could still save you money. For example, you might live in a town with only one store. Your store has coupons. Technically, you're paying more than someone in another town with a store WITHOUT coupons. But as driving there isn't actually an option for you, the act of using a coupon still saves you money, because otherwise you'd be the even MORE expensive normal price.

(B) This is just a restatement of what the passage said (See above).

(C) We are told the coupon stores need to charge more in order "to compensate for this expense without reducing profits," implying that the profits more or less even out.

(D) We have no way of knowing about OTHER expenses that get passed on to consumers.

(E) We don't know about EVERY product, only that the AVERAGE price of all products is slightly higher at the stores with coupons.

Hope that helps!

-t

Another way you might think of A as incorrect is that it's too broad. It's possible that everyone who uses coupons doesn't just use them in RETAIL stores, but also uses them elsewhere at places where they DONT have to pay more because of the production costs associated with coupons. In that case, they could be saving money in those other places.

[estellaW580]

Here's my reasoning.
Lets take the second sentence apart.
However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products--even after lower prices available on coupon-discounted products are factored in.

ok LONG ASS SENTENCE, so lets break it apart,
Step 1: scratch "distribute and accept store coupons as a way of discounting the prices on certain products" and "--even after lower prices available on coupon-discounted products are factored in. "

Step 2: this becomes, in general, retail stores charge more for their products, on average than other retails stores do for the same ones.

Step 3: scratch in general: this is now, retail stores charge more for their products on average than other retails stores do for the same ones.

Analogy: I get on average more questions right than she does.

this translates to : maybe sometimes I get more questions right than she does, sometimes i dont, but if we average it by all the tests we've taken. I get more questions right.

by same logic: the sentence means, these retails stores may have 200 products, and may charge higher prices than the other ones, on 150 products, but on the other 50 lower prices than the other. but it doesn't matter, it is also possible these stores charge all 200 products with higher prices. what remains is .. when you average the 200 products, the price is higher than the others.



Step 4: add back in general, retail stores charge more for their products, on average, than other stores do.

in general just means. Some retail stores do this (refer to step 3), given in general, lets say, more than half. but there are also some, who do not do this at all. meaning they may really discount their products, set lower prices than other stores who dont discount do.

lets look at A
A is a could be true. Not MUST BE TRUE
many consumers who redeem coupons save little if any money at all, could be true.
same could be true that many consumers save a lot of money.
or many consumers save little money.... anything is possible.

the argument of this question is trying to say B : retail stores compensate for the expense of producing and distributing coupons by charging higher prices on some products, passing it onto the consumers. the FIRST sentence, is just the context where this whole argument is set.