Logical Reasoning

PT135 · S2 · Q22 Most economists believe

A free, expert breakdown of this official LSAT Logical Reasoning question.

  • Save & drill this skill — build targeted practice sets from questions like this one

  • Video walkthroughs — watch every question solved step by step

  • 81 official LSATs — as questions, timed sections & full-length tests

Start practicing free

Most economists believe that reducing the price of any product generally stimulates demand for it.

Apparent Paradox

Most economists believe that reducing the price of any product generally stimulates demand for it.

However, most wine merchants have found that reducing the price of domestic wines to make them more competitive with imported wines with which they were previously comparably priced is frequently followed by an increase in sales of those imported wines.

Evaluate

Why would stimulating demand for domestic wines be followed by an increase in sales of imported wines?

It’s not clear, but it’s possible that consuming more domestic wine somehow further encourages more consumption which to some extent increases demand for imported wines as well.

22.

Which one of the following, if true, most helps to reconcile the belief of most economists with the consequences observed by most wine merchants?

  1. Economists' studies of the prices

    Deepens the Paradox

    This makes it less clear how the economists’ belief is consistent with the consequences observed by most wine merchants.

    12% picked this

  2. Few merchants of any kind

    Out of Scope

    The issue is the economists’ belief, while this is about the wine merchants’ understanding of economic theory.

    1% picked this

  3. Consumers are generally willing to

    Out of Scope

    The statements do not indicate whether domestic wine or imported wine is superior.

    15% picked this

  4. Imported wines in all price

    Deepens the Paradox

    This makes it less clear why an increase in sales of domestic wines would boost sales of imported wines.

    8% picked this

  5. Correct

    An increase in the demand

    Why this is right

    This does not explain how the increased demand for domestic wines might boost demand for imported wines. But the question stem only called the right answer to reconcile the economists’ belief with the consequences observed by most wine merchants.

    Skill tested: Paradox · how this choice captures the argument's function is the move to repeat next time.

    64% picked this

Continue the review in LSAT Lab

Save this question, watch the video walkthrough, and drill similar questions in your LSAT Lab account.

Save and practice this skill
LSAT Lab

Turn this review into a targeted study plan.

Save this question, drill more like it, watch the video walkthrough, and track your progress in your LSAT Lab account.

Start practicing free