Logical Reasoning

PT147 · S1 · Q22 Consumer advocate: Economists reason

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Consumer advocate: Economists reason that price gouging—increasing the price of goods when no alternative seller is available—is efficient because it allocates goods to people whose willingness to pay more shows that they really need those goods.

Conclusion (implied)

This argument claiming that price gouging is efficient fails.

Intermediate Conclusion (as a result)

Price gouging will not, as they have argued, end up allocating goods to the people with the most need for those goods.

Intermediate Conclusion

A person's willingness to pay for a pricey item is not proportional to their need for that item.

Premise

In the real world, no matter how much you need something, you just might not be able to pay as much as others can.

Evaluate

Whenever we read Role or Main Conclusion, we prime our brains for arguments that put the conclusion in the very first sentence, or arguments that start with another point of view and then pivot into the author's rebuttal.

This was the latter style. When authors rebut some initial position, the conclusion can sometimes be implied. We want to feel these arguments having this sort of chronological structure (usually):

1. Some people say X 2. But I, the author, am concluding maybe not X 3. Here's why (here's my evidence)

There might be intermediate conclusions within #3, but we don't want to lose sight of the fact that these intermediate conclusions are still serving the purpose of supporting #2, which is the author's rebuttal to #1.

Here, we're being asked about "willingness to pay is not proportional to need". This is part of how the author rebuts the economists, so we can say it plays the role of Supporting his rebuttal.

But we can also call this claim a Conclusion, because it's supported by the second to last sentence in the paragraph.

Goal

Look for something saying this claim is part of how the author rebuts the economists, or something saying that this claim is a conclusion supported by the fact that .

22.

Which one of the following most accurately describes the role played in the consumer advocate's argument by the claim that willingness to pay is not proportional to need?

  1. It disputes one explanation in

    Out of Scope: Alternate Explanation

    Is the author disputing an explanation? Yes, she's rebutting the economists. What are they trying to explain? They're trying to explain why price gouging is efficient. They say that it's efficient because it allocates goods to those who most need them. An alternate explanation would say something like, "That's not the reason price gouging is efficient. It's efficient because it encourages innovation for cheaper alternative products." What this rebuttal does is reject the plausibility of the economists' explanation. "It makes no sense to say that price gouging is efficient because it allocates goods to those most in need. The people buying these goods aren't the ones that most need them, they're just the ones that are affluent enough to pay the jacked up price."

    29% picked this

  2. It is the overall conclusion

    Wrong Role: overall

    This claim isn't the Main Conclusion, because the main conclusion needs to be about price gouging, the launching pad for this whole conversation. We know this claim can't be the biggest conclusion, because the author's final sentence is supported by this claim. FINAL SENTENCE Price gouging will allocate goods to the people with the most money, not with the most need. why should we believe that? because ... - willingness to pay more is not proportional to more need why should we believe that? because ... - in the real world, some people just can't pay what others can

    23% picked this

  3. It is a component of

    Wrong Role: disputed

    This is one of the author's conclusions. She isn't disputing it. It isn't a component of something she's disputing. It is a component of the body of evidence she is using to dispute the economists.

    4% picked this

  4. It is a general principle

    Wrong Role

    Just like (C), the author isn't disputing this claim. The author isn't questioning the validity of this claim. This claim is one of the author's conclusions. This claim is questioning the validity of a general principle cited by the economists. They cited a general principle, willingness to pay more shows that they really need those goods The claim we're being asked about is our author questioning the validity of the economists' principle (it's even stronger than questioning the validity -- our claim is the author asserting the invalidity of the economists' principle).

    2% picked this

  5. Correct

    It denies a claim that

    Why this is right

    Can we give them a slow golf clap for this answer? You just have to smile. Denies a claim assumed in the reasoning it rejects. When there are that many somersaults, it's usually easiest to work backwards. Did the author reject some reasoning? Yes, she rejected the economists' reasoning about price gouging. Was there some claim the economists were assuming? Yes, they were assuming that "willingness to pay more shows that people really need those goods more". It the claim we're being asked about denying that assumption? Yes, it's saying, "Nuh-uh. Willingness to pay is not proportional to need". Okay, everything checks out, including our suspicions that they want our brains to melt at some point during the test.

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

    42% picked this

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