Q26 - Commentator: For a free market

[skapur777]

So it seems that two conditions are necessary for free markets to properly function.

1. Must be able to contact a large number of independent prospective sellers
2. compare the prices charged for the item to what the item is worth

I picked (A). I figured that if the people do not shop for auto repairs then they don't contact a large number of independent prospective sellers. But now I realize that they only must BE ABLE to do this...they don't actually have to do it. Is that true?

B seems to be correct because if one is NOT ABLE to determine the worth of an item, they cannot compare the prices charged to what it is worth.

Here's a general question though:

In (A), they do not mention if they can or cannot compare prices so we just have to assume that we don't know either way? That makes sense, if that is true, as then it cannot follow logically.

Thanks!

[giladedelman]

Yeah, you're right on the money! (A) says they don't, but it doesn't say whether they can or cannot, so we have no idea.

(B) is correct because as you said, if some people don't know what the repairs are worth, then it can't be true that "each prospective buyer" can "compare the prices charged ... to what the item is worth."

(C) is incorrect because whether the estimates are written is irrelevant.

(D) is out because the point is not that they charge more than the repairs are worth, the point is whether consumers can compare price to value or not.

(E) is totally out of scope -- standardized prices?

[pathosj]

I actually chose (E), because if there are no standardized prices, how can anyone tell what things are worth?

I understand that (B) is a more direct answer and that (E) may require a bunch of assumptions. Sometimes I find myself picking choices like this by trying to stay mindful of possible valid choices that may come from left field.

How can I identify and rule out choices that are out of scope better?

[giladedelman]

Thanks for posting!

As you said, your explanation of (E) requires some serious assumption-making. Why does it have to be the case that people can't tell what something is worth if prices aren't standardized? Hamburger prices aren't standardized, but I have a sense of what I should be paying for a Big Mac versus a kobe burger from Spago.

So what is the connection between standardized prices, on the one hand, and people knowing what something is worth, on the other? I submit that we have no idea what the connection is, based on the argument. That's what I mean when I say this answer is "out of scope": there is no connection between "standardized prices" and anything discussed in the argument core.

[js_martin01]

Here's how I solved this one. The argument boils down to an important conditional statement in which our answer derives.

We're looking for a sufficient assumption in order to validate our argument.

P1: For a free market to function properly, each prospective buyer of an item must be able to contact a large number of independent prospective sellers and compare the prices charged for the item to what the item is worth.

This can be broken down into a conditional statement which reads:
FP=function properly
CAC= contact a large number of independent sellers and compare...

which gives us:
FP--->CAC
via the contrapositive:
-CAC--->-FP

Conclusion: The auto repair company does not constitute a properly function free market

To validate this conclusion, I will look for an answer that denies the necessary condition of being able to figure out the worth of an item. If you can't satisfy this condition, then you cannot conclude that you have a properly functioning free market.

Answer choice B does just this, asserting that some people who shop for car repairs are unable to determine precisely what these repairs are worth.

[AnnaT620]

Could we have the full analysis of the question / answers please? I understand this is a sufficient assumption question.

Why is C incorrect here? My thinking was that if not all customers have the prices provided to them, then how can they compare the prices? Written estimates are mentioned in the argument core.

Thanks very much!

[DeannaK734]

Is there an explanation to this question from a Manhattan Prep person? Bueller?

[Misti Duvall]

Is there an explanation to this question from a Manhattan Prep person? Bueller?

Sorry, it's not always easy to tell for older posts. The posts above from giladedelman are the Instructor explanations.