Consumers will be hurt by the new lower ceilings on halibut catches. Given the law of supply and demand these restri...

Sean on July 15, 2018

A B and C

All three of these seem like viable options. Could you explain? Thank you!

1 Reply

Mehran on July 15, 2018

Hi @smilde11, thanks for your post.

As ever, let's start with the stimulus. This one presents an argument; the conclusion is that the price of halibut is likely as a result of the new lower ceilings on halibut catches. The only support provided here is a reference to "the law of supply and demand."

What is the law of supply and demand? That when the supply of a product decreases, but demand for it remains constant or increases, the price of that product will increase.

What is assumed in this stimulus, therefore, is that the demand for halibut is going to either stay the same or increase after these new restrictions are imposed. If demand for halibut were to *decrease* after these new restrictions take effect, then there would not necessarily be any increase in the price of the fish.

Now, let's examine answer choices (A), (B), and (C).

(A) is correct. It specifically states the missing assumption: that the demand for this particular fish will *not* decrease substantially after the new restrictions are imposed. Again, if this is true, then it means that demand for halibut will either remain constant or increase, which, pursuant to the law of supply and demand, means that the price of halibut can, indeed, be expected to increase.

(B) can be eliminated because it does not state the missing assumption. Remember: an assumption is an unstated premise. In this stimulus, the only stated premise is a reference to "the law of supply and demand." That fact is not, therefore, the missing assumption here. What we need from the correct answer is the missing piece of information that helps us strengthen this particular conclusion and this particular application of the law of supply and demand. (B) does not do this.

(C) can be eliminated because it is too broad. The conclusion you are trying to strengthen here is specific to the price of halibut, not "other fish." Focusing on the specific conclusion that you are being asked to strengthen is key to helping you eliminate "red herring" answer choices (no pun intended . . . :)

Hope this is helpful! Please let us know if you have any additional questions.